FedEx must be punished for deliberately breaking Chinese law, according to a China Media Group (CMG) commentary published on Sunday. Police in Fuzhou City, east China's Fujian Province, said Sunday an investigation had been launched into a case involving a FedEx package containing a gun.

FedEx must be punished for deliberately breaking Chinese law: commentary

&nbsp;Oil prices fell on Monday amid worries about an economic slowdown and the <a href="https://www.wionews.com/photos/us-china-trade-war-in-10-dates-241155#march-22-china-ripostes-241133">US-China&nbsp;trade&nbsp;war</a>, which have led to a cut in the outlook for global oil demand.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous&nbsp;settlement.

US&nbsp;West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the&nbsp;trade&nbsp;dispute&nbsp;between the United States and&nbsp;China&nbsp;has weakened demand and reduced crude prices.

US&nbsp;President Donald Trump said on Friday he was not ready to make a deal with&nbsp;China&nbsp;and even called a September round of&nbsp;trade&nbsp;talks into question.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Goldman Sachs Group Inc said on Sunday it no longer expects a&nbsp;trade&nbsp;deal between the world's two largest economies before the 2020 US presidential election.

The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008.

OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year.

"If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday.&nbsp;

"We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel."

In a sign of lower production in the United States, the weekly US&nbsp;oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions.

India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the trade dispute between the United States and China has weakened demand and reduced crude prices. US President Donald Trump said on Friday he was not ready to make a deal with China and even called a September round of trade talks into question. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Goldman Sachs Group Inc said on Sunday it no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election. The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008. OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year. "If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday. "We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel." In a sign of lower production in the United States, the weekly US oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions. India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil edges down on lower demand outlook, US-China trade dispute

Yen&nbsp;and&nbsp;bond&nbsp;bulls&nbsp;charged on Monday while stocks struggled again, amid ongoing worries that a prolonged <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade war </a>and damaging Brexit could tip-top economies into recession.

Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight.

That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday.

Safety remained the name of the game.

FX harbour, the Japanese&nbsp;yen, hit its highest in nearly a year and a half at 105.32&nbsp;yen&nbsp;against the dollar and gained against the euro and Brexit-bruised British pound too.

"Risk indicators and&nbsp;global&nbsp;markets&nbsp;have become shakier and the&nbsp;yen&nbsp;is reflecting those concerns, and safe-haven shelters like the&nbsp;yen&nbsp;and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt.

In&nbsp;bond&nbsp;markets, the demand for guaranteed income was also unrelenting.

A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming.

There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed.

"Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields.

Economists are also watching for a batch of&nbsp;global&nbsp;data this week.

Goldman Sachs became the latest to cut its US&nbsp;growth forecast at the weekend, warning that a US&nbsp;China trade deal now looked unlikely before the 2020 US&nbsp;presidential election.

One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions.

The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals.

Mixed messages

On Friday, Wall Street snapped a three-day winning streak after US&nbsp;President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now.

Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&amp;P 500 lost 0.66% and the Nasdaq Composite dropped 1%.

White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators.

Wall Street futures were down 0.5%.

In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement.

US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital&nbsp;Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Argentina's&nbsp;markets&nbsp;were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October.

Argentina's 2028-maturing, euro-denominated government&nbsp;bond&nbsp;was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession. Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight. That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday. Safety remained the name of the game. FX harbour, the Japanese yen, hit its highest in nearly a year and a half at 105.32 yen against the dollar and gained against the euro and Brexit-bruised British pound too. "Risk indicators and global markets have become shakier and the yen is reflecting those concerns, and safe-haven shelters like the yen and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt. In bond markets, the demand for guaranteed income was also unrelenting. A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming. There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed. "Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields. Economists are also watching for a batch of global data this week. Goldman Sachs became the latest to cut its US growth forecast at the weekend, warning that a US China trade deal now looked unlikely before the 2020 US presidential election. One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions. The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals. Mixed messages On Friday, Wall Street snapped a three-day winning streak after US President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now. Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&P 500 lost 0.66% and the Nasdaq Composite dropped 1%. White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators. Wall Street futures were down 0.5%. In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Argentina's markets were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October. Argentina's 2028-maturing, euro-denominated government bond was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charge on as share markets falter

A&nbsp;cautious&nbsp;calm&nbsp;returned to stock markets on Wednesday as softer&nbsp;rhetoric&nbsp;from Washington on the US-China&nbsp;trade&nbsp;war&nbsp;soothed investors, though demand for safe-haven assets underscored lingering anxiety.

Europe's STOXX 600 climbed 0.7%, recovering from a three-day sell-off as investors fled after an escalation in the&nbsp;trade&nbsp;war. MSCI's world equity index, which tracks shares in 47 countries, rose 0.2%.

But gold, the Japanese yen and government debt remained in high demand as investors remained&nbsp;wary of riskier assets.

US shares gained overnight after President Donald Trump downplayed worries of a lengthy&nbsp;trade&nbsp;war&nbsp;and senior adviser Larry Kudlow said Trump's administration is planning to host a Chinese delegation for talks in September. Wall Street futures gauges also rose.

The US administration's remarks marked a shift in tone from recent days when Beijing&nbsp;warned that Washington's labelling China as a currency manipulator on Monday would have severe consequences for the global financial order.

Still, market players voiced caution. Trump's threat to impose additional tariffs on more Chinese products is set to take effect in less than a month.

"There is some&nbsp;cautious&nbsp;buying creeping back in," said Michael Hewson, chief market strategist at CMC Markets. "But if you want that to be sustained you have to look towards September 1, when the new tariffs kick in, and whether or not Trump presses ahead with them."

MSCI's broadest index of Asia-Pacific shares outside Japan was slightly lower.

Also easing the mood were signs that China is intervening to steady the yuan after its recent sharp fall, allaying investor fears of a global currency&nbsp;war.

The US Treasury designated China a currency manipulator on Monday after it allowed the yuan to weaken below 7 per dollar for the first time in over a decade. The US move rattled financial markets and dimmed hopes the&nbsp;trade&nbsp;war&nbsp;was ending.

Since then, China's state banks have been active in the onshore yuan forwards market, tightening dollar supply and supporting the Chinese currency, sources told Reuters.

The yuan still dropped 0.2% to 7.0708 in offshore markets despite the support. The People's Bank of China (PBOC) set its official reference rate at an 11-year low, keeping currency markets on edge.

"We had a little bit of recovery yesterday, but this morning we are seeing that stalling due to the PBOC fixing the dollar-yen higher again," said Thu Lan Nguyen, FX strategist at Commerzbank. "It has caused markets to again be in a bit of a risk-off mode."

Safe Havens in Demand

The skittish mood was underlined by continuing demand for currencies and commodities considered safe havens.

Gold reached a six-year high of $1,489.76 per ounce. The Japanese yen rose 0.2% to 106.27, although that was still some way from levels seen on Monday when the&nbsp;trade&nbsp;war's escalation panicked investors.

The US bonds have also retained much of their gains made in the past week. Ten-year Treasury notes yielded 1.66% per cent, their lowest since 2016, as investors bet on another rate cut by the Federal Reserve in September.

Fixed income markets have benefited from fears the US-China&nbsp;trade&nbsp;war&nbsp;would raise the risk of a global recession, strengthening the case for policy easing by central banks.

Germany's 10-year bond yield fell to record lows deep in negative territory as a bigger-than-expected interest rate cut in New Zealand and weak German data gave further impetus to a rally in bond markets.

German industrial output fell more than expected in June, adding to signs that Europe's biggest economy contracted in the second quarter as its exporters were caught up in&nbsp;trade disputes.

In commodity markets, oil prices slipped, with the potential for damage to the global economy and to fuel demand from the Sino-US&nbsp;trade&nbsp;dispute casting a shadow over the market.

International benchmark Brent crude futures were at $58.79 a barrel by 0759 GMT, down 14 cents, or 0.05%, and trading near seven-month lows.

A cautious calm returned to stock markets on Wednesday as softer rhetoric from Washington on the US-China trade war soothed investors, though demand for safe-haven assets underscored lingering anxiety.

A cautious calm returned to stock markets on Wednesday as softer rhetoric from Washington on the US-China trade war soothed investors, though demand for safe-haven assets underscored lingering anxiety. Europe's STOXX 600 climbed 0.7%, recovering from a three-day sell-off as investors fled after an escalation in the trade war. MSCI's world equity index, which tracks shares in 47 countries, rose 0.2%. But gold, the Japanese yen and government debt remained in high demand as investors remained wary of riskier assets. US shares gained overnight after President Donald Trump downplayed worries of a lengthy trade war and senior adviser Larry Kudlow said Trump's administration is planning to host a Chinese delegation for talks in September. Wall Street futures gauges also rose. The US administration's remarks marked a shift in tone from recent days when Beijing warned that Washington's labelling China as a currency manipulator on Monday would have severe consequences for the global financial order. Still, market players voiced caution. Trump's threat to impose additional tariffs on more Chinese products is set to take effect in less than a month. "There is some cautious buying creeping back in," said Michael Hewson, chief market strategist at CMC Markets. "But if you want that to be sustained you have to look towards September 1, when the new tariffs kick in, and whether or not Trump presses ahead with them." MSCI's broadest index of Asia-Pacific shares outside Japan was slightly lower. Also easing the mood were signs that China is intervening to steady the yuan after its recent sharp fall, allaying investor fears of a global currency war. The US Treasury designated China a currency manipulator on Monday after it allowed the yuan to weaken below 7 per dollar for the first time in over a decade. The US move rattled financial markets and dimmed hopes the trade war was ending. Since then, China's state banks have been active in the onshore yuan forwards market, tightening dollar supply and supporting the Chinese currency, sources told Reuters. The yuan still dropped 0.2% to 7.0708 in offshore markets despite the support. The People's Bank of China (PBOC) set its official reference rate at an 11-year low, keeping currency markets on edge. "We had a little bit of recovery yesterday, but this morning we are seeing that stalling due to the PBOC fixing the dollar-yen higher again," said Thu Lan Nguyen, FX strategist at Commerzbank. "It has caused markets to again be in a bit of a risk-off mode." Safe Havens in Demand The skittish mood was underlined by continuing demand for currencies and commodities considered safe havens. Gold reached a six-year high of $1,489.76 per ounce. The Japanese yen rose 0.2% to 106.27, although that was still some way from levels seen on Monday when the trade war's escalation panicked investors. The US bonds have also retained much of their gains made in the past week. Ten-year Treasury notes yielded 1.66% per cent, their lowest since 2016, as investors bet on another rate cut by the Federal Reserve in September. Fixed income markets have benefited from fears the US-China trade war would raise the risk of a global recession, strengthening the case for policy easing by central banks. Germany's 10-year bond yield fell to record lows deep in negative territory as a bigger-than-expected interest rate cut in New Zealand and weak German data gave further impetus to a rally in bond markets. German industrial output fell more than expected in June, adding to signs that Europe's biggest economy contracted in the second quarter as its exporters were caught up in trade disputes. In commodity markets, oil prices slipped, with the potential for damage to the global economy and to fuel demand from the Sino-US trade dispute casting a shadow over the market. International benchmark Brent crude futures were at $58.79 a barrel by 0759 GMT, down 14 cents, or 0.05%, and trading near seven-month lows.

Cautious calm returns to stock markets as White House softens trade war rhetoric

Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and <a href="https://www.wionews.com/world/oil-steadies-as-demand-concern-counters-middle-east-tensions-234074">Middle East</a> tensions outweighed the <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade</a> dispute that has been dragging down the global economy and oil demand.

<a href="https://www.wionews.com/business-economy/opec-decides-to-extend-oil-output-cuts-after-saudi-arabia-russia-pact-232179">OPEC </a>and its allies agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran's nuclear program.

Benchmark Brent crude rose 59 cents to $64.70 a barrel by 1033 GMT. The US West Texas Intermediate crude was up 46 cents to $58.12.

"OPEC and its allies are doing their best to support the market," said Tamas Varga, an analyst with PVM.

"Oil prices are to hold up reasonably well during the coming months or at least they are not to fall out of bed."

Rising tensions between Iran and the United States have brought the two countries close to conflict. Last month, President Donald Trump called off air strikes at the last minute in retaliation for Iran shooting down a US drone.

Iran threatened to restart deactivated centrifuges on Monday and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.

Oil also gained support from reports expected to show a drop in US crude inventories.

US crude stockpiles are forecast to fall 3.6 million barrels in a fourth consecutive weekly decline. The first of this week's two supply reports are due at 2030 GMT from the American Petroleum Institute, an industry group.

Russian oil output fell close to a three-year low in early July, industry sources told Reuters, dragged down by declining output from the largest producer Rosneft.

The decline follows the discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe.

While supply and security concerns supported the market, gains were capped by the US-China trade war that has dampened prospects for global economic growth.

The world's two largest oil consumers are set to relaunch trade talks this week, although there are few signs their differences have narrowed a year after the dispute erupted.

"Demand is soft," said Olivier Jakob, an analyst at Petromatrix. "Generally, market participants find the market is fairly well balanced and don't seem to be too concerned about any potential supply disruptions."

Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and Middle East tensions outweighed the US-China trade dispute that has been dragging down the global economy and oil demand.

Oil rose towards $65 a barrel on Tuesday as OPEC supply cuts and Middle East tensions outweighed the US-China trade dispute that has been dragging down the global economy and oil demand. OPEC and its allies agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran's nuclear program. Benchmark Brent crude rose 59 cents to $64.70 a barrel by 1033 GMT. The US West Texas Intermediate crude was up 46 cents to $58.12. "OPEC and its allies are doing their best to support the market," said Tamas Varga, an analyst with PVM. "Oil prices are to hold up reasonably well during the coming months or at least they are not to fall out of bed." Rising tensions between Iran and the United States have brought the two countries close to conflict. Last month, President Donald Trump called off air strikes at the last minute in retaliation for Iran shooting down a US drone. Iran threatened to restart deactivated centrifuges on Monday and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year. Oil also gained support from reports expected to show a drop in US crude inventories. US crude stockpiles are forecast to fall 3.6 million barrels in a fourth consecutive weekly decline. The first of this week's two supply reports are due at 2030 GMT from the American Petroleum Institute, an industry group. Russian oil output fell close to a three-year low in early July, industry sources told Reuters, dragged down by declining output from the largest producer Rosneft. The decline follows the discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe. While supply and security concerns supported the market, gains were capped by the US-China trade war that has dampened prospects for global economic growth. The world's two largest oil consumers are set to relaunch trade talks this week, although there are few signs their differences have narrowed a year after the dispute erupted. "Demand is soft," said Olivier Jakob, an analyst at Petromatrix. "Generally, market participants find the market is fairly well balanced and don't seem to be too concerned about any potential supply disruptions."

Oil rises towards $65 as supply concerns outweigh trade disputes

The <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">United States and China are set to relaunch trade talks</a> this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

After meeting with Chinese President Xi Jinping in Japan just in late June, US President <a href="https://www.wionews.com/world/g20-summit-donald-trump-confirms-wont-impose-new-tariffs-on-china-231445">Donald Trump agreed to suspend a new round of tariffs</a> on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations.

Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies.

But sources familiar with the talks and <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">China trade</a> watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May.

A US official said last week the <a href="https://www.wionews.com/world/us-china-trade-officials-aim-to-talk-next-week-officials-233488">discussions were expected to resume with a phone call</a> between US <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">Trade </a>Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.

A USTR spokesman said the call was expected this week, but gave no further details.

The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace.

"We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck."

Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.

Watch: US-China trade friction hurting world economic chain: Chinese scholars

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"The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added.

No firm commitments

Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka.

Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities.

In pics: <a href="https://www.wionews.com/photos/why-china-is-afraid-of-us-abrams-tanks-to-be-delivered-to-taiwan-234260">Why China is afraid of US Abrams tanks to be delivered to Taiwan</a>

One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement.

Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs.

"The Chinese have been clear they didn't promise anything," said one source familiar with the talks.

"The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies."

Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133].

Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US&nbsp;firms to sell products and services to Huawei [nL2N24402Y]

Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs.

So the focus on the upcoming talks will be the scrapping on the tariffs, they say.

A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal."

One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.

"The negotiating environment is even more severe," the official said.

Another official said <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China remained concerned</a> about the presence of hawks in the US&nbsp;team, such as Trump advisor Peter Navarro.

"There are bullies there," the official said.

The officials spoke to Reuters on condition of anonymity.

China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests".

A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced.

"A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials.

Which text?

There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports.

Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty.

Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out.

Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges.

US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides.

Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal.

"It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win."

One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed. After meeting with Chinese President Xi Jinping in Japan just in late June, US President Donald Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations. Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies. But sources familiar with the talks and China trade watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May. A US official said last week the discussions were expected to resume with a phone call between US Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin. A USTR spokesman said the call was expected this week, but gave no further details. The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace. "We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck." Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides. Watch: US-China trade friction hurting world economic chain: Chinese scholars × "The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added. No firm commitments Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka. Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities. In pics: Why China is afraid of US Abrams tanks to be delivered to Taiwan One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement. Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs. "The Chinese have been clear they didn't promise anything," said one source familiar with the talks. "The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies." Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133]. Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US firms to sell products and services to Huawei [nL2N24402Y] Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs. So the focus on the upcoming talks will be the scrapping on the tariffs, they say. A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal." One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues. "The negotiating environment is even more severe," the official said. Another official said China remained concerned about the presence of hawks in the US team, such as Trump advisor Peter Navarro. "There are bullies there," the official said. The officials spoke to Reuters on condition of anonymity. China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests". A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced. "A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials. Which text? There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports. Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty. Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out. Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges. US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides. Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal. "It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win." One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

United States, China to relaunch talks with little changed since deal fell apart

Top Chinese and US officials will resume<a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043"> trade talks </a>in accordance with the wishes of their leaders, but China hopes the <a href="https://www.wionews.com/world/us-planning-more-tariffs-on-chinese-goods-represent-worst-scenario-for-both-countries-227803">United States</a> will create the necessary conditions for dialogue, the Chinese commerce ministry said on Thursday.&nbsp;

Negotiations to reach a broad trade deal broke down last month after <a href="https://www.wionews.com/world/we-need-chinese-products-says-us-publishers-amid-trade-war-228553">US officials </a>accused China of backing away from previously agreed commitments.

But hopes for a revival of negotiations have been rekindled by a telephone call on Wednesday between US President Donald Trump and his Chinese counterpart, Xi Jinping, and confirmation they will meet next week in Japan at a G20 summit.&nbsp;

US Trade Representative Robert Lighthizer said on Wednesday he would speak by telephone to Liu He, China`s vice premier and chief negotiator in the trade talks, "in the next day and a half".

"The heads of the two trade teams will communicate, according to instructions passed down from the two presidents," Chinese commerce ministry spokesman Gao Feng told reporters, without elaborating.&nbsp;

"We hope (the United States) will create the necessary conditions and atmosphere for solving problems through dialogue as equals."

The two countries have imposed increasingly severe tariffs on each other`s imports. China has vowed to not give in on issues of principle or under US pressure.

Trump has threatened to put tariffs on another $325 billion worth of goods, covering nearly all remaining Chinese imports into the United States, including consumer products such as cellphones, computers and clothing.

The prospect of a de-escalation in the dispute has helped cheer financial markets weighed by threats of more tariff measures and countermeasures and strident rhetoric from both countries.

But three main differences remain, including the removal of all additional tariffs, China says. Both sides have disagreed over trade purchases and a "balanced" text for any trade deal.

Those three "matters of principle" cannot be compromised, China has said.

Asked if China`s demands for a trade deal were still tied to the three issues being met, Gao said: "China`s principles and basic stance on Sino-US economic and trade consultations have always been clear and consistent, and China`s core concerns must be properly resolved."

The US Trade Representative`s Office kicked off seven days of testimony this week from US retailers, manufacturers and other businesses about Trump`s tariff plan.

China hopes the United States would listen to its industry voices, and stop threatening tariffs and waging a trade war, Gao said, adding that such behaviour was "wrong" and should be "abandoned".

The upcoming trade talks between Xi and Trump are unlikely to immediately resolve major disagreements between the two sides but could start a new phase in negotiations, Chinese state media said on Thursday.

But when asked if China thought it could reach an agreement with the United States on issues such as its structural reforms, the implementation mechanism, intellectual right protection and further opening of its markets, Gao still expressed optimism.

"Both sides have immense mutual interests. I believe by taking care of each other`s concerns through equal dialogue, both sides will for sure be able to find a solution to solve the problems properly," Gao said.&nbsp;

'Bottom lines'

The official China Daily said in an editorial both parties were "in the mood for serious dialogue" as a full-blown trade war was "lose-lose", but one single meeting was unlikely to wrap everything up.

"The two parties` expectations are too divergent to allow that," it said.&nbsp;

"More likely than not, the one-on-one meeting will end up being the start of a new phase in the negotiations with the two leaders personally setting out their country`s respective bottom lines."

Another influential Chinese newspaper, the Global Times, said China had sent a clear signal to the United States that "China can never be daunted."

China has managed to get the United States back to the table with its determination and ability to "prepare for war", Taoran Notes, a widely read and influential WeChat account run by the Economic Daily, wrote late on Wednesday.

"Only by being able to fight, daring to fight and being good at fighting can you stop a war," it wrote.&nbsp;

China would take the "necessary measures" if the United States imposes additional tariffs on the $300 billion of Chinese goods, Gao said, without elaborating.

IP Theft and Reforms

The Trump administration has accused China of failing to protect intellectual property rights, forced technology transfers and of failing to provide a level playing field for US companies.

China has repeatedly promised to open its market wider to foreign investors and provide them with better services and treatment.

Speaking to a group of 19 chief executives of foreign multinationals in Beijing on Thursday, Premier Li Keqiang reiterated those promises.

"China will maintain our long-standing commitment to reform and opening in order to continue to expand and open. We welcome more and more foreign investment to come to China," Li said, in comments in front of reporters.&nbsp;

"We will also relax (restrictions on) access to even more fields to create a market-oriented, law-based internationalised business environment."

&nbsp;

Top Chinese and US officials will resume trade talks in accordance with the wishes of their leaders, but China hopes the United States will create the necessary conditions for dialogue, the Chinese commerce ministry said on Thursday.

Top Chinese and US officials will resume trade talks in accordance with the wishes of their leaders, but China hopes the United States will create the necessary conditions for dialogue, the Chinese commerce ministry said on Thursday. Negotiations to reach a broad trade deal broke down last month after US officials accused China of backing away from previously agreed commitments. But hopes for a revival of negotiations have been rekindled by a telephone call on Wednesday between US President Donald Trump and his Chinese counterpart, Xi Jinping, and confirmation they will meet next week in Japan at a G20 summit. US Trade Representative Robert Lighthizer said on Wednesday he would speak by telephone to Liu He, China`s vice premier and chief negotiator in the trade talks, "in the next day and a half". "The heads of the two trade teams will communicate, according to instructions passed down from the two presidents," Chinese commerce ministry spokesman Gao Feng told reporters, without elaborating. "We hope (the United States) will create the necessary conditions and atmosphere for solving problems through dialogue as equals." The two countries have imposed increasingly severe tariffs on each other`s imports. China has vowed to not give in on issues of principle or under US pressure. Trump has threatened to put tariffs on another $325 billion worth of goods, covering nearly all remaining Chinese imports into the United States, including consumer products such as cellphones, computers and clothing. The prospect of a de-escalation in the dispute has helped cheer financial markets weighed by threats of more tariff measures and countermeasures and strident rhetoric from both countries. But three main differences remain, including the removal of all additional tariffs, China says. Both sides have disagreed over trade purchases and a "balanced" text for any trade deal. Those three "matters of principle" cannot be compromised, China has said. Asked if China`s demands for a trade deal were still tied to the three issues being met, Gao said: "China`s principles and basic stance on Sino-US economic and trade consultations have always been clear and consistent, and China`s core concerns must be properly resolved." The US Trade Representative`s Office kicked off seven days of testimony this week from US retailers, manufacturers and other businesses about Trump`s tariff plan. China hopes the United States would listen to its industry voices, and stop threatening tariffs and waging a trade war, Gao said, adding that such behaviour was "wrong" and should be "abandoned". The upcoming trade talks between Xi and Trump are unlikely to immediately resolve major disagreements between the two sides but could start a new phase in negotiations, Chinese state media said on Thursday. But when asked if China thought it could reach an agreement with the United States on issues such as its structural reforms, the implementation mechanism, intellectual right protection and further opening of its markets, Gao still expressed optimism. "Both sides have immense mutual interests. I believe by taking care of each other`s concerns through equal dialogue, both sides will for sure be able to find a solution to solve the problems properly," Gao said. 'Bottom lines' The official China Daily said in an editorial both parties were "in the mood for serious dialogue" as a full-blown trade war was "lose-lose", but one single meeting was unlikely to wrap everything up. "The two parties` expectations are too divergent to allow that," it said. "More likely than not, the one-on-one meeting will end up being the start of a new phase in the negotiations with the two leaders personally setting out their country`s respective bottom lines." Another influential Chinese newspaper, the Global Times, said China had sent a clear signal to the United States that "China can never be daunted." China has managed to get the United States back to the table with its determination and ability to "prepare for war", Taoran Notes, a widely read and influential WeChat account run by the Economic Daily, wrote late on Wednesday. "Only by being able to fight, daring to fight and being good at fighting can you stop a war," it wrote. China would take the "necessary measures" if the United States imposes additional tariffs on the $300 billion of Chinese goods, Gao said, without elaborating. IP Theft and Reforms The Trump administration has accused China of failing to protect intellectual property rights, forced technology transfers and of failing to provide a level playing field for US companies. China has repeatedly promised to open its market wider to foreign investors and provide them with better services and treatment. Speaking to a group of 19 chief executives of foreign multinationals in Beijing on Thursday, Premier Li Keqiang reiterated those promises. "China will maintain our long-standing commitment to reform and opening in order to continue to expand and open. We welcome more and more foreign investment to come to China," Li said, in comments in front of reporters. "We will also relax (restrictions on) access to even more fields to create a market-oriented, law-based internationalised business environment."

Hope US will create necessary conditions for dialogue as trade talks expected to resume: Chinese Commerce ministry

Scholars and experts expressed their views that no one will benefit from the trade tensions between China and the United States when they gathered in Beijing Thursday for a symposium on China-US trade ties organized by Tsinghua University. In the name of protecting domestic industries, Washington has placed steep tariffs on billions of US dollars' worth of products from China, a heavy blow to the two countries' economic and trade relations.

US-China trade friction hurting world economic chain: Chinese scholars

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the <a href="https://www.wionews.com/world/google-flags-us-national-security-risks-from-huawei-ban-report-225151">Chinese tech giant</a> as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software.

Customers who already have <a href="https://www.wionews.com/world/huawei-willing-to-sign-no-spy-agreement-with-us-government-chairman-224403">Huawei </a>phones will still be able to use its apps and receive updates, Facebook told Reuters. But new Huawei phones will no longer be able to have Facebook, WhatsApp and Instagram apps pre-installed.

Smartphone vendors often enter business deals to pre-install popular apps such as Facebook. Apps including Twitter and Booking.com also come pre-installed on Huawei phones in many markets. Twitter Inc declined to comment and Booking Holdings did not respond to a request.

The move by Facebook dampens the sales outlook for Huawei Technologies Co Ltd, whose smartphone business became its biggest revenue generator last year, powered by strong growth in Europe and Asia.

Also read-&nbsp;<a href="https://www.wionews.com/world/explainer-us-china-trade-war-the-levers-they-can-pull-224809">US-China trade war: The levers they can pull</a>

Huawei declined to comment.

Alphabet Inc's Google said earlier that it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the U.S. government expires in August. But Google's Playstore and all Google apps will still be available for current models of Huawei phones including those which have not yet shipped or even been built.

The Facebook ban, by contrast, applies to any Huawei phone that has not yet left the factory, according to a person familiar with the matter. Facebook declined to comment on when the suspension took place.

In May, Washington banned US companies from supplying technology to Huawei, part of a long-running campaign against the company. The United States alleges that Huawei is too close to the Chinese government and that its telecom network gear and other products could be a conduit for espionage, which Huawei denies.

Watch: Huawei says US blacklisting sets 'dangerous precedent'

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Buyers of current Huawei phone models that do not have Facebook pre-installed would still be able to download it from the Google Playstore. Future versions of Huawei phones, however, will not have access to the Google Playstore and its apps unless the US government changes course.

Huawei has said it was prepared for the US action and vowed to work around any disruptions. But some customers at stores in Europe and Asia have told Reuters that they are reluctant to buy Huawei phones in the face of uncertainties, and analysts expect a dramatic drop in Huawei smartphone sales. 
&nbsp;

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software.

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software. Customers who already have Huawei phones will still be able to use its apps and receive updates, Facebook told Reuters. But new Huawei phones will no longer be able to have Facebook, WhatsApp and Instagram apps pre-installed. Smartphone vendors often enter business deals to pre-install popular apps such as Facebook. Apps including Twitter and Booking.com also come pre-installed on Huawei phones in many markets. Twitter Inc declined to comment and Booking Holdings did not respond to a request. The move by Facebook dampens the sales outlook for Huawei Technologies Co Ltd, whose smartphone business became its biggest revenue generator last year, powered by strong growth in Europe and Asia. Also read- US-China trade war: The levers they can pull Huawei declined to comment. Alphabet Inc's Google said earlier that it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the U.S. government expires in August. But Google's Playstore and all Google apps will still be available for current models of Huawei phones including those which have not yet shipped or even been built. The Facebook ban, by contrast, applies to any Huawei phone that has not yet left the factory, according to a person familiar with the matter. Facebook declined to comment on when the suspension took place. In May, Washington banned US companies from supplying technology to Huawei, part of a long-running campaign against the company. The United States alleges that Huawei is too close to the Chinese government and that its telecom network gear and other products could be a conduit for espionage, which Huawei denies. Watch: Huawei says US blacklisting sets 'dangerous precedent' × Buyers of current Huawei phone models that do not have Facebook pre-installed would still be able to download it from the Google Playstore. Future versions of Huawei phones, however, will not have access to the Google Playstore and its apps unless the US government changes course. Huawei has said it was prepared for the US action and vowed to work around any disruptions. But some customers at stores in Europe and Asia have told Reuters that they are reluctant to buy Huawei phones in the face of uncertainties, and analysts expect a dramatic drop in Huawei smartphone sales.

Facebook suspends app pre-installs on Huawei phones

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground.

Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports.&nbsp;

Chinese state media has warned that Beijing could use rare earths for its next strike in the trade war. The United States relies on China for supplies of the rare earths to make a host of high-tech products, from satellites to electric car batteries.&nbsp;

Here are some other possible pressure points for each side.

POTENTIAL CHINESE RESPONSES 
HIKING TARIFFS FURTHER&nbsp;

China could impose tariffs on around $10 billion of US goods that as yet carry no retaliatory tariffs.&nbsp;

Beijing removed some tariffs on US car imports in December, and could reimpose them.

China could raise tariffs from 25 per cent on some US goods such as soybeans. China was the top US buyer of soybeans until the trade war, which came close to halting the flow altogether. If it raises tariffs again, Chinese soy importers will seek more supplies from Brazil and elsewhere, as they did in 2018, which would hurt US farmers. These are targeted tariffs, aimed at the US farming community that supported Trump`s 2016 presidential election victory.

High-tech items, such as semi-conductor manufacturing equipment and chips, would be unlikely to feature on a list for higher tariffs, because China cannot easily find alternatives.

China has so far spared Boeing passenger jets, its single most valuable US import, from tariffs. Chinese carriers are expanding rapidly to meet rising demand, so tariffs on Boeing could slow development of the domestic travel industry.

China could buy more aircraft from France`s Airbus instead of Boeing, which would make it more reliant on Europe for a few years until it completes development of homegrown commercial aircraft, COMAC`s C919. 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
DUMPING TREASURIES

China is the biggest holder of US government debt, with about $1.12 trillion in US Treasuries. Beijing buys Treasuries as a safe-haven for foreign exchange reserves.

The editor-in-chief of China`s influential Global Times tweeted in May that "many Chinese scholars are discussing the possibility of dumping U.S. Treasuries and how to do it specifically."

A selloff would hurt US markets, driving up interest rates and pushing up borrowing costs. The US central bank could lower its benchmark interest rate or buy debt to counter the move.

China sold the most long-dated US Treasuries in almost 2-1/2 years in March. But most China experts say Beijing is unlikely to undertake a big selloff because that would lower the value of China`s foreign exchange reserves. The Chinese would be hard-pressed to find a safe alternative investment with a good yield. 
&nbsp; &nbsp;&nbsp; 
DEVALUATION

Some analysts have floated the idea of a one-off devaluation of the Chinese currency to make the country`s exports more competitive despite US tariffs. But that would spook foreign and domestic investors and give the United States ammunition to sanction the country for currency manipulation.&nbsp;

"That is not retaliation. That is escalation of the trade war," said Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics.&nbsp;

The Chinese currency has weakened nearly 4 per cent since July 2018, when US authorities began collecting the first China-specific tariffs. That has absorbed some of the impact of tariffs on Chinese exporters.

HARASSING US COMPANIES OR SLOWING VISA APPROVALS

China`s Commerce Ministry said on Friday it will draft a list of foreign companies, organisations and individuals that it deems "unreliable" for harming Chinese companies, state-run China National Radio reported.

The move does not single out any countries or companies, but the report cited a ministry spokesman as saying the "unreliable entities list" will apply to those that flout market rules and the spirit of contracts, block supplies to Chinese companies for non-commercial reasons and "seriously harm the legitimate rights and interests" of Chinese companies.&nbsp;

China could target high-profile US companies such as Apple , although that could backfire as millions of Chinese people depend on the tech firm for their jobs.

Goldman Sachs estimates that banning Apple products could slash profits of the iPhone maker by almost a third. Apple and other US firms are also vulnerable to consumer boycotts in China. There is precedent for this: South Korean companies faced boycotts when deployment of a US anti-missile system angered China`s government.

Beijing could make life difficult for American banks, restaurant chains such as Starbucks , courier companies such as Fedex and commodity suppliers by opening tax inquiries, withholding licenses and other similar bureaucratic moves.

Big US businesses, however, have been among those pushing for a more moderate stance in Washington, so it would not help Beijing`s case to alienate them. Many American brands in China have joint ventures with Chinese partners, and these would also be hurt by government pressure.

Both sides have already slowed visa approvals for academics; authorities could do the same for executives and government officials.&nbsp;

DIPLOMATIC RECALCITRANCE AND MILITARY POSTURING

Beijing could reduce cooperation with the United States on thorny international issues, such as North Korea and Iran. It could also step up military gestures in the South China Sea and around Taiwan, an unofficial US ally.&nbsp;

RARE EARTH METALS&nbsp;

President Xi Jinping visited a rare earth firm in Southern China earlier in May, fuelling speculation China could cut off supplies of the metals, a key ingredient in high-technology consumer electronics and military equipment, to the United States as part of the trade war. China supplies 80 per cent of US rare earths.&nbsp; 
&nbsp; &nbsp;&nbsp; 
&nbsp;US RETALIATION AGAINST CHINA HIGHER TARIFFS

The United States could increase tariffs on Chinese imports. Authority for that rests with Trump, who has described himself as tariff-man. 
One option would be to raise levies on $50 billion worth of Chinese technology goods, including machinery, semiconductors, autos aircraft parts and intermediate electronic components on which tariffs were imposed last July and August. The products, taxed at a 25 per cent rate, were selected to avoid hitting US consumers and to hamper China`s technology development.

SANCTIONS AGAINST SPECIFIC COMPANIES

The United States could sanction additional Chinese companies flagged for a host of issues, from alleged intellectual property theft to sanctions violations or human rights concerns.

One option would be placing more companies on a blacklist that bars US suppliers from selling to them without special permits, as the Trump administration did with Huawei Technologies last month. &nbsp;

Washington is already considering sanctions for Chinese video surveillance firm Hikvision and equipment maker Zhejiang Dahua Technology. They are involved in surveillance at Chinese detention centres for ethnic Uighurs and other Muslims. &nbsp;

The downside would be hurting US companies that do business with the targeted firm.

Administration officials could further increase pressure on foreign governments to exclude Huawei from their 5G networks. 
&nbsp; &nbsp;&nbsp; 
JUSTICE DEPARTMENT CRACKDOWN

The Justice Department is likely to continue to crack down on Chinese spies and hackers for stealing technology and trade secrets from American corporations, as part of its China initiative to counter Chinese economic and security threats.&nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
FOREIGN POLICY AND DEFENSE LEVERS?&nbsp;

Tension has already risen as the United States undertakes freedom of navigation operations through the Taiwan Strait and South China Sea. China has been increasingly assertive about its sovereignty over Taiwan, which it considers Chinese territory to be brought under Beijing`s control by force if needed.

US warships have sailed through the Taiwan Strait at least once a month since the start of this year. The United States restarted such missions on a regular basis last July.&nbsp;

Trump`s government could impose sanctions on prominent Chinese officials seen as complicit in human rights violations of the Uighur population. Congress has urged Trump to impose such sanctions.

Washington could also deepen a crackdown on Chinese companies that fund or supply North Korea`s nuclear programs.&nbsp;

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground. Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports.

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground. Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports. Chinese state media has warned that Beijing could use rare earths for its next strike in the trade war. The United States relies on China for supplies of the rare earths to make a host of high-tech products, from satellites to electric car batteries. Here are some other possible pressure points for each side. POTENTIAL CHINESE RESPONSES HIKING TARIFFS FURTHER China could impose tariffs on around $10 billion of US goods that as yet carry no retaliatory tariffs. Beijing removed some tariffs on US car imports in December, and could reimpose them. China could raise tariffs from 25 per cent on some US goods such as soybeans. China was the top US buyer of soybeans until the trade war, which came close to halting the flow altogether. If it raises tariffs again, Chinese soy importers will seek more supplies from Brazil and elsewhere, as they did in 2018, which would hurt US farmers. These are targeted tariffs, aimed at the US farming community that supported Trump`s 2016 presidential election victory. High-tech items, such as semi-conductor manufacturing equipment and chips, would be unlikely to feature on a list for higher tariffs, because China cannot easily find alternatives. China has so far spared Boeing passenger jets, its single most valuable US import, from tariffs. Chinese carriers are expanding rapidly to meet rising demand, so tariffs on Boeing could slow development of the domestic travel industry. China could buy more aircraft from France`s Airbus instead of Boeing, which would make it more reliant on Europe for a few years until it completes development of homegrown commercial aircraft, COMAC`s C919. DUMPING TREASURIES China is the biggest holder of US government debt, with about $1.12 trillion in US Treasuries. Beijing buys Treasuries as a safe-haven for foreign exchange reserves. The editor-in-chief of China`s influential Global Times tweeted in May that "many Chinese scholars are discussing the possibility of dumping U.S. Treasuries and how to do it specifically." A selloff would hurt US markets, driving up interest rates and pushing up borrowing costs. The US central bank could lower its benchmark interest rate or buy debt to counter the move. China sold the most long-dated US Treasuries in almost 2-1/2 years in March. But most China experts say Beijing is unlikely to undertake a big selloff because that would lower the value of China`s foreign exchange reserves. The Chinese would be hard-pressed to find a safe alternative investment with a good yield. DEVALUATION Some analysts have floated the idea of a one-off devaluation of the Chinese currency to make the country`s exports more competitive despite US tariffs. But that would spook foreign and domestic investors and give the United States ammunition to sanction the country for currency manipulation. "That is not retaliation. That is escalation of the trade war," said Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics. The Chinese currency has weakened nearly 4 per cent since July 2018, when US authorities began collecting the first China-specific tariffs. That has absorbed some of the impact of tariffs on Chinese exporters. HARASSING US COMPANIES OR SLOWING VISA APPROVALS China`s Commerce Ministry said on Friday it will draft a list of foreign companies, organisations and individuals that it deems "unreliable" for harming Chinese companies, state-run China National Radio reported. The move does not single out any countries or companies, but the report cited a ministry spokesman as saying the "unreliable entities list" will apply to those that flout market rules and the spirit of contracts, block supplies to Chinese companies for non-commercial reasons and "seriously harm the legitimate rights and interests" of Chinese companies. China could target high-profile US companies such as Apple , although that could backfire as millions of Chinese people depend on the tech firm for their jobs. Goldman Sachs estimates that banning Apple products could slash profits of the iPhone maker by almost a third. Apple and other US firms are also vulnerable to consumer boycotts in China. There is precedent for this: South Korean companies faced boycotts when deployment of a US anti-missile system angered China`s government. Beijing could make life difficult for American banks, restaurant chains such as Starbucks , courier companies such as Fedex and commodity suppliers by opening tax inquiries, withholding licenses and other similar bureaucratic moves. Big US businesses, however, have been among those pushing for a more moderate stance in Washington, so it would not help Beijing`s case to alienate them. Many American brands in China have joint ventures with Chinese partners, and these would also be hurt by government pressure. Both sides have already slowed visa approvals for academics; authorities could do the same for executives and government officials. DIPLOMATIC RECALCITRANCE AND MILITARY POSTURING Beijing could reduce cooperation with the United States on thorny international issues, such as North Korea and Iran. It could also step up military gestures in the South China Sea and around Taiwan, an unofficial US ally. RARE EARTH METALS President Xi Jinping visited a rare earth firm in Southern China earlier in May, fuelling speculation China could cut off supplies of the metals, a key ingredient in high-technology consumer electronics and military equipment, to the United States as part of the trade war. China supplies 80 per cent of US rare earths. US RETALIATION AGAINST CHINA HIGHER TARIFFS The United States could increase tariffs on Chinese imports. Authority for that rests with Trump, who has described himself as tariff-man. One option would be to raise levies on $50 billion worth of Chinese technology goods, including machinery, semiconductors, autos aircraft parts and intermediate electronic components on which tariffs were imposed last July and August. The products, taxed at a 25 per cent rate, were selected to avoid hitting US consumers and to hamper China`s technology development. SANCTIONS AGAINST SPECIFIC COMPANIES The United States could sanction additional Chinese companies flagged for a host of issues, from alleged intellectual property theft to sanctions violations or human rights concerns. One option would be placing more companies on a blacklist that bars US suppliers from selling to them without special permits, as the Trump administration did with Huawei Technologies last month. Washington is already considering sanctions for Chinese video surveillance firm Hikvision and equipment maker Zhejiang Dahua Technology. They are involved in surveillance at Chinese detention centres for ethnic Uighurs and other Muslims. The downside would be hurting US companies that do business with the targeted firm. Administration officials could further increase pressure on foreign governments to exclude Huawei from their 5G networks. JUSTICE DEPARTMENT CRACKDOWN The Justice Department is likely to continue to crack down on Chinese spies and hackers for stealing technology and trade secrets from American corporations, as part of its China initiative to counter Chinese economic and security threats. FOREIGN POLICY AND DEFENSE LEVERS? Tension has already risen as the United States undertakes freedom of navigation operations through the Taiwan Strait and South China Sea. China has been increasingly assertive about its sovereignty over Taiwan, which it considers Chinese territory to be brought under Beijing`s control by force if needed. US warships have sailed through the Taiwan Strait at least once a month since the start of this year. The United States restarted such missions on a regular basis last July. Trump`s government could impose sanctions on prominent Chinese officials seen as complicit in human rights violations of the Uighur population. Congress has urged Trump to impose such sanctions. Washington could also deepen a crackdown on Chinese companies that fund or supply North Korea`s nuclear programs.

US-China trade war: The levers they can pull

<a href="https://www.wionews.com/business-economy/huawei-reviewing-fedex-relationship-says-packages-diverted-222142">Huawei</a> said Wednesday the tech giant has asked a US court to throw out<a href="https://www.wionews.com/world/dont-be-too-optimistic-huawei-employees-fret-at-us-ban-221684"> US </a>legislation that bars federal agencies from buying its products.

The tech giant filed suit against the US bill in March, calling it "unconstitutional" and saying the US Congress had failed to provide evidence to support its restrictions on Huawei products.

The company said it filed the motion for summary judgment on Wednesday (Tuesday in the United States).

"The US government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation," Huawei's chief legal officer Song Liuping said in a statement.

A motion for summary judgment aims to seek a judge's decision without going to a full trial.

Watch: Huawei says it's a 'victim of bullying by the US administration'

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The court case comes as Huawei also faces a broader US executive order preventing the use of its equipment in the United States and a more damaging US action to blacklist the company, cutting it off from critical American-made components for its products, though a 90-day reprieve was issued.

'Correct the mistakes'

Huawei's case against the US was filed in a US District Court in Plano, Texas, challenging what it called an "unconstitutional" 2019 defence bill that prevents government agencies from buying its equipment, services, or working with third parties that are Huawei customers.

The firm has argued that the US bill violates a bill of attainder clause by "singling out Huawei for punishment".

"The judicial system is the last line of defence for justice. Huawei has confidence in the independence and integrity of the US judicial system," Song said.

"We hope that mistakes in the NDAA can be corrected by the court," he said, referring to the National Defense Authorization Act.

Washington has warned that Huawei systems could be manipulated by Beijing to spy on other countries and disrupt critical communications, and is urging nations to shun the company in 5G networks.

The concerns have escalated as Huawei has risen to become the world leader in telecom networking equipment and one of the top smartphone manufacturers alongside Samsung and Apple.

The firm's proactive battles in US courts signal it is willing to use all means, including national courts, to prevent exclusion from a race to the 5G market -- the future of high-speed telecommunications.

Huawei said Wednesday the tech giant has asked a US court to throw out US legislation that bars federal agencies from buying its products. The tech giant filed suit against the US bill in March, calling it "unconstitutional" and saying the US Congress had failed to provide evidence to support its restrictions on Huawei products.

Huawei said Wednesday the tech giant has asked a US court to throw out US legislation that bars federal agencies from buying its products. The tech giant filed suit against the US bill in March, calling it "unconstitutional" and saying the US Congress had failed to provide evidence to support its restrictions on Huawei products. The company said it filed the motion for summary judgment on Wednesday (Tuesday in the United States). "The US government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation," Huawei's chief legal officer Song Liuping said in a statement. A motion for summary judgment aims to seek a judge's decision without going to a full trial. Watch: Huawei says it's a 'victim of bullying by the US administration' × The court case comes as Huawei also faces a broader US executive order preventing the use of its equipment in the United States and a more damaging US action to blacklist the company, cutting it off from critical American-made components for its products, though a 90-day reprieve was issued. 'Correct the mistakes' Huawei's case against the US was filed in a US District Court in Plano, Texas, challenging what it called an "unconstitutional" 2019 defence bill that prevents government agencies from buying its equipment, services, or working with third parties that are Huawei customers. The firm has argued that the US bill violates a bill of attainder clause by "singling out Huawei for punishment". "The judicial system is the last line of defence for justice. Huawei has confidence in the independence and integrity of the US judicial system," Song said. "We hope that mistakes in the NDAA can be corrected by the court," he said, referring to the National Defense Authorization Act. Washington has warned that Huawei systems could be manipulated by Beijing to spy on other countries and disrupt critical communications, and is urging nations to shun the company in 5G networks. The concerns have escalated as Huawei has risen to become the world leader in telecom networking equipment and one of the top smartphone manufacturers alongside Samsung and Apple. The firm's proactive battles in US courts signal it is willing to use all means, including national courts, to prevent exclusion from a race to the 5G market -- the future of high-speed telecommunications.

Huawei asks US court to throw out federal ban

The same week <a href="https://www.wionews.com/world/victory-awaits-in-china-trade-war-trump-tells-farmers-218859">US&nbsp;President Donald Trump</a> announced sweeping increases on tariffs against Chinese goods, Chinese buyers dropped orders for 3,247 metric tonnes of US pork - the biggest cancellation in more than a year, according to US Department of Agriculture data released on Thursday.

The cancellation came during the week ended May 9, a blow to the $6.5 billion export market for American pork, vital to the burgeoning US meat industry. 
Prior to the trade war, China and Hong Kong combined were the second largest export market for US pork.

For months, the US&nbsp;farm sector - which has been among the<a href="https://www.wionews.com/world/us-consumers-businesses-to-pay-for-tariffs-on-chinese-goods-expert-219096"> hardest hit by the trade war</a> between the world`s two largest economies - has been banking on China increasing its US&nbsp;pork purchases due to African swine fever (ASF).

But the <a href="https://www.wionews.com/photos/top-facts-how-us-china-talks-differ-from-any-other-trade-deal-217563">trade war</a>, and China`s tariffs against US pork, is showing signs of slowing China`s willingness to load up on the meat, say industry analysts.

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Earlier this year, China cancelled sales of 53 metric tonnes in the week ended February&nbsp;28, sales of 999 metric tonnes in the week ended March 21, and 214 metric tonnes in the week ended April 18, according to USDA data.

Market analysts said the cancellation news on Thursday weighed on the lean hog futures market.

"It`s just disappointing that this trade war could drag on for months and that means more tariffs on pork," said Dennis Smith, commodity broker with Archer Financial Services. "This should not be happening. We should be selling a lot of pork to China, because of ASF."

African swine fever kills almost all pigs infected, though it is not harmful to people. The disease has spread rapidly across China, the world`s top pork producer. In neighbouring Vietnam, the government said it will mobilize its military and police forces to combat an outbreak.

USDA said on Thursday that it will soon begin testing sick and dead pigs for the hog virus that has killed herds across Asia in an effort to minimize devastation if the disease enters the United States.&nbsp;

The same week US President Donald Trump announced sweeping increases on tariffs against Chinese goods, Chinese buyers dropped orders for 3,247 metric tonnes of US pork - the biggest cancellation in more than a year, according to US Department of Agriculture data released on Thursday.

The same week US President Donald Trump announced sweeping increases on tariffs against Chinese goods, Chinese buyers dropped orders for 3,247 metric tonnes of US pork - the biggest cancellation in more than a year, according to US Department of Agriculture data released on Thursday. The cancellation came during the week ended May 9, a blow to the $6.5 billion export market for American pork, vital to the burgeoning US meat industry. Prior to the trade war, China and Hong Kong combined were the second largest export market for US pork. For months, the US farm sector - which has been among the hardest hit by the trade war between the world`s two largest economies - has been banking on China increasing its US pork purchases due to African swine fever (ASF). But the trade war, and China`s tariffs against US pork, is showing signs of slowing China`s willingness to load up on the meat, say industry analysts. × Earlier this year, China cancelled sales of 53 metric tonnes in the week ended February 28, sales of 999 metric tonnes in the week ended March 21, and 214 metric tonnes in the week ended April 18, according to USDA data. Market analysts said the cancellation news on Thursday weighed on the lean hog futures market. "It`s just disappointing that this trade war could drag on for months and that means more tariffs on pork," said Dennis Smith, commodity broker with Archer Financial Services. "This should not be happening. We should be selling a lot of pork to China, because of ASF." African swine fever kills almost all pigs infected, though it is not harmful to people. The disease has spread rapidly across China, the world`s top pork producer. In neighbouring Vietnam, the government said it will mobilize its military and police forces to combat an outbreak. USDA said on Thursday that it will soon begin testing sick and dead pigs for the hog virus that has killed herds across Asia in an effort to minimize devastation if the disease enters the United States.

China cancels US pork import order as US-China trade war drags on

China announced higher tariffs on 60 billion US dollars worth of American goods in retaliation for US President Donald Trump's latest penalties on Chinese products, sending Wall Street into a slide.

China's hike of US tariffs sparks Asia stock losses

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday.

American and Chinese trade officials have until March 1 to resolve their <a href="http://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">trade war</a>, to prevent a sharp increase in punitive US duties on $200 billion in Chinese goods.

Treasury Secretary Steven Mnuchin raised the idea of revoking tariffs on some or all of the $250 billion in Chinese goods impacted, during discussions on the strategy for the current talks but the question has not yet reached the White House, according to The Journal.

The US stock market reacted favorably to the report, with equities prices closing higher after being flat for most of the day.

The talks with Beijing are being led by US Trade Representative Robert Lighthizer, who has taken a more hard line position on trade than Mnuchin.

The Treasury Department told AFP on that the trade talks with China were "nowhere near completion."

"Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China," a spokesperson working with the trade team said by email.

CNBC quoted a senior White House official involved in the trade talks saying that Trump had no incentive to offer concessions, and officials instead were focused on preparations for talks with Chinese Vice Premier Liu He set for January 30-31 in Washington.

US President Donald Trump tweeted January 8 that the talks with Beijing were "going very well!"

But the trade war has rattled stock markets in the months since, putting pressure on the White House to reach a resolution.

Trump launched the trade war last year and the two sides have since exchanged tit-for-tat tariffs on more than $360 billion in two-way trade.

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday.

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday. American and Chinese trade officials have until March 1 to resolve their trade war, to prevent a sharp increase in punitive US duties on $200 billion in Chinese goods. Treasury Secretary Steven Mnuchin raised the idea of revoking tariffs on some or all of the $250 billion in Chinese goods impacted, during discussions on the strategy for the current talks but the question has not yet reached the White House, according to The Journal. The US stock market reacted favorably to the report, with equities prices closing higher after being flat for most of the day. The talks with Beijing are being led by US Trade Representative Robert Lighthizer, who has taken a more hard line position on trade than Mnuchin. The Treasury Department told AFP on that the trade talks with China were "nowhere near completion." "Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China," a spokesperson working with the trade team said by email. CNBC quoted a senior White House official involved in the trade talks saying that Trump had no incentive to offer concessions, and officials instead were focused on preparations for talks with Chinese Vice Premier Liu He set for January 30-31 in Washington. US President Donald Trump tweeted January 8 that the talks with Beijing were "going very well!" But the trade war has rattled stock markets in the months since, putting pressure on the White House to reach a resolution. Trump launched the trade war last year and the two sides have since exchanged tit-for-tat tariffs on more than $360 billion in two-way trade.

US officials consider lifting China tariffs: Report

<a href="http://www.wionews.com/business-economy/asian-shares-soften-as-investors-look-to-g20-summit-180358">Asian shares</a> fell on Tuesday as a relief rally petered out amid rising doubts over whether China and the United States will be able to<a href="http://www.wionews.com/opinions/g20-summit-bring-a-truce-in-us-china-trade-relations-181105"> resolve trade differences</a>.

An inverted US&nbsp;yield curve also raised concerns about a possible recession.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent as Chinese equity markets struggled to move out of negative territory.

Chinese blue-chip shares in Shenzhen and Shanghai were slightly weaker, and the benchmark Shanghai Composite index edged barely higher. Shares in Hong Kong lost 0.3 per cent.

Australia shares gave up 0.8 per cent and Seoul's Kospi fell 0.6 per cent, while Japan's Nikkei stock index was 1.3 per cent lower.

The temporary freeze on further hostilities in the trade war between the United States and China had sparked a global rally in equity markets on Monday, pushing MSCI's all-country world index up 1.3 per cent.

But even before the trading day ended, major U.S. indexes pulled back from intraday highs as investors pondered unresolved issues between the two countries.

Overnight, the Dow Jones Industrial Average closed 1.13 per cent higher, the S&amp;P 500 gained 1.09 per cent and the Nasdaq Composite added 1.51 per cent.

"Overall trade news overnight (has) probably left the market with more questions than answers, can the US and China really resolve their differences in 90 days?" National Australia Bank analysts said in a note to clients.

"It seems that more details and signs of progress will be needed if the initial trade truce warm fuzzy feeling is to be sustained."

Already, there was confusion over when the 90-day period would start. A White House official said it started on Dec. 1. Earlier, White House economic adviser Larry Kudlow told reporters it would start on Jan. 1.

Moreover, none of the commitments that U.S. officials said had been given by China, including reducing its 40 per cent tariffs on autos, were agreed to in writing and specifics had yet to be hammered out.

"The fear across global markets is that this is just a short-term relief rally and we will find ourselves back where we were a few weeks ago and staring down the barrel of a long-term global growth slow down," Nick Twidale, Sydney-based analyst at Rakuten Securities Australia said in a note.

"In the short term, it seems we may find investors once again back to trading sentiment fluctuations as news hits the markets piecemeal on trade agreement progress."

Adding to worries over the outlook for the global economy, the yield curve between U.S. three-year and five-year notes, and between two-year and five-year paper inverted on Monday - the first parts of the Treasury yield curve to invert since the financial crisis, excluding very short-dated debt.

Analysts expect an inversion of the two-year, 10-year yield curve - seen as a predictor of a U.S. recession - to follow suit.

On Tuesday, the yield on benchmark 10-year Treasury notes fell to 2.9407 per cent compared with its U.S. close of 2.991 per cent on Monday. The two-year yield also fell, but by a narrower margin, touching 2.8028 per cent compared with a U.S. close of 2.833 per cent.

That put the spread between 10-year and two-year Treasuries at less than 14 basis points, its flattest level since July 2007.

"The market pricing evident in the yield curve inversion from three to five segment of the curve, as well as the dip in the 10-year yield below 3 per cent yesterday, goes to reinforce these concerns" about the U.S. economy potentially heading into a recession, said Prakash Sakpal, an economist at ING in Singapore.

However, he added that solid U.S. manufacturing data released Monday pointed to a stronger economic outlook, with new orders a "key driver" in boosting activity.

In contrast to how Asian equity markets could not sustain Monday's rally, oil prices continued to rise after surging 4 per cent the day before on the U.S.-China trade truce, and ahead of a key OPEC meeting expected to lead to supply cuts.

U.S. crude was 1.2 per cent higher at $53.58 per barrel, and Brent crude futures gained 1.1 per cent to $62.35 a barrel.

In the currency market, the dollar index, which tracks the greenback against a basket of peers, softened 0.2 per cent to 96.808.

The dollar was 0.3 per cent weaker against the yen, at 113.28, and the euro gained 0.2 per cent to $1.1373.

As the dollar weakened, China's yuan continued to surge. Since Friday, it has added more than 1,000 pips against the greenback, reaching 6.8545 on Tuesday morning. At 0327 GMT, it was trading at 6.8613 to the dollar.

Federal Reserve Chairman Jerome Powell was scheduled to testify on Wednesday to a congressional Joint Economic Committee, but the hearing was postponed because of a national day of mourning for <a href="http://www.wionews.com/world/former-us-president-george-bush-dies-at-94-son-180616">U.S. President George H.W. Bush,</a> who died on Friday.

The dollar came under pressure last week on Powell's comments that rates were nearing neutral levels, which markets widely interpreted as signalling a slowdown in the Fed's rate-hike cycle.

Spot gold jumped on the weaker dollar, trading up 0.40 per cent at $1,235.88 per ounce.&nbsp;

Asian shares fell on Tuesday as a relief rally petered out amid rising doubts over whether China and the United States will be able to resolve trade differences.

Asian shares fell on Tuesday as a relief rally petered out amid rising doubts over whether China and the United States will be able to resolve trade differences. An inverted US yield curve also raised concerns about a possible recession. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent as Chinese equity markets struggled to move out of negative territory. Chinese blue-chip shares in Shenzhen and Shanghai were slightly weaker, and the benchmark Shanghai Composite index edged barely higher. Shares in Hong Kong lost 0.3 per cent. Australia shares gave up 0.8 per cent and Seoul's Kospi fell 0.6 per cent, while Japan's Nikkei stock index was 1.3 per cent lower. The temporary freeze on further hostilities in the trade war between the United States and China had sparked a global rally in equity markets on Monday, pushing MSCI's all-country world index up 1.3 per cent. But even before the trading day ended, major U.S. indexes pulled back from intraday highs as investors pondered unresolved issues between the two countries. Overnight, the Dow Jones Industrial Average closed 1.13 per cent higher, the S&P 500 gained 1.09 per cent and the Nasdaq Composite added 1.51 per cent. "Overall trade news overnight (has) probably left the market with more questions than answers, can the US and China really resolve their differences in 90 days?" National Australia Bank analysts said in a note to clients. "It seems that more details and signs of progress will be needed if the initial trade truce warm fuzzy feeling is to be sustained." Already, there was confusion over when the 90-day period would start. A White House official said it started on Dec. 1. Earlier, White House economic adviser Larry Kudlow told reporters it would start on Jan. 1. Moreover, none of the commitments that U.S. officials said had been given by China, including reducing its 40 per cent tariffs on autos, were agreed to in writing and specifics had yet to be hammered out. "The fear across global markets is that this is just a short-term relief rally and we will find ourselves back where we were a few weeks ago and staring down the barrel of a long-term global growth slow down," Nick Twidale, Sydney-based analyst at Rakuten Securities Australia said in a note. "In the short term, it seems we may find investors once again back to trading sentiment fluctuations as news hits the markets piecemeal on trade agreement progress." Adding to worries over the outlook for the global economy, the yield curve between U.S. three-year and five-year notes, and between two-year and five-year paper inverted on Monday - the first parts of the Treasury yield curve to invert since the financial crisis, excluding very short-dated debt. Analysts expect an inversion of the two-year, 10-year yield curve - seen as a predictor of a U.S. recession - to follow suit. On Tuesday, the yield on benchmark 10-year Treasury notes fell to 2.9407 per cent compared with its U.S. close of 2.991 per cent on Monday. The two-year yield also fell, but by a narrower margin, touching 2.8028 per cent compared with a U.S. close of 2.833 per cent. That put the spread between 10-year and two-year Treasuries at less than 14 basis points, its flattest level since July 2007. "The market pricing evident in the yield curve inversion from three to five segment of the curve, as well as the dip in the 10-year yield below 3 per cent yesterday, goes to reinforce these concerns" about the U.S. economy potentially heading into a recession, said Prakash Sakpal, an economist at ING in Singapore. However, he added that solid U.S. manufacturing data released Monday pointed to a stronger economic outlook, with new orders a "key driver" in boosting activity. In contrast to how Asian equity markets could not sustain Monday's rally, oil prices continued to rise after surging 4 per cent the day before on the U.S.-China trade truce, and ahead of a key OPEC meeting expected to lead to supply cuts. U.S. crude was 1.2 per cent higher at $53.58 per barrel, and Brent crude futures gained 1.1 per cent to $62.35 a barrel. In the currency market, the dollar index, which tracks the greenback against a basket of peers, softened 0.2 per cent to 96.808. The dollar was 0.3 per cent weaker against the yen, at 113.28, and the euro gained 0.2 per cent to $1.1373. As the dollar weakened, China's yuan continued to surge. Since Friday, it has added more than 1,000 pips against the greenback, reaching 6.8545 on Tuesday morning. At 0327 GMT, it was trading at 6.8613 to the dollar. Federal Reserve Chairman Jerome Powell was scheduled to testify on Wednesday to a congressional Joint Economic Committee, but the hearing was postponed because of a national day of mourning for U.S. President George H.W. Bush, who died on Friday. The dollar came under pressure last week on Powell's comments that rates were nearing neutral levels, which markets widely interpreted as signalling a slowdown in the Fed's rate-hike cycle. Spot gold jumped on the weaker dollar, trading up 0.40 per cent at $1,235.88 per ounce.

Global markets: Asia shares fall as lift from US-China trade truce ends

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US&nbsp;President Donald Trump and Chinese leader Xi Jinping.

US shares, however, turned positive midday after a Chinese official said at the Group of 20 industrialized nations summit in Argentina that the United States and China were making progress on trade talks.

"Consensus is steadily increasing," Wang Xiaolong, director general of the Chinese Foreign Ministry's department of international economic affairs, told Reuters on the sidelines of the summit.

The S&amp;P 500 and Nasdaq posted their biggest weekly percentage gains in nearly seven years on trade hopes and after the US Federal Reserve hinted this week at a more dovish approach to interest rate hikes.&nbsp;

In Europe, Frankfurt's had its worst run since late 2008, weighed by Deutsche Bank shares falling to an all-time low as police searched the bank's headquarters for a second day in a money laundering scandal linked to the Panama Papers.

MSCI's gauge of stocks across the globe shed 0.10 per cent, while the pan-European STOXX 600 index&nbsp;lost 0.17 per cent.

On Wall Street, the Dow Jones Industrial Average rose 199.62 points, or 0.79 per cent, to 25,538.46, the S&amp;P 500 &nbsp;gained 22.4 points, or 0.82 per cent, to 2,760.16 and the Nasdaq Composite added 57.45 points, or 0.79 per cent, to 7,330.54.

November's real humdingers have been oil and shares of Apple Inc, which have plunged 21 per cent and 18 per cent, respectively, the biggest declines for both since the financial crisis a decade ago.

Swelling oil inventories depressed sentiment and oil prices, despite widespread expectations that OPEC and Russia would agree on some form of production cut next week. OPEC and its allies are meeting in Vienna next week to discuss oil output.&nbsp;

Ucrude fell 1.69 per cent to $50.58 per barrel and Brent was last at $58.68, down 1.39 per cent on the day.

Markets could have a wild December if Trump and Xi fail to de-escalate their trade rhetoric during talks at this weekend's G20 meeting in Argentina.

"The three key issues that people are really focusing on are how dovish is the Fed going to be going forward, how are trade relations with China going to play out, and what's going on in the oil markets," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.

"But as we get better news, that's helped lift the markets," Ripley added. "That's why we're seeing a week like this week."

Trump pointed to positive signs in trade talks, saying on Friday, "We're working very hard. If we could make a deal, that would be good. I think they want to. I think we'd like to."

Still, the dollar rose as investors prepared for fallout from the talks, which are expected to increase volatility across markets.

The dollar index, tracking the greenback against six major currencies, rose 0.46 per cent, with the euro&nbsp;down 0.66 per cent to $1.1316.

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US President Donald Trump and Chinese leader Xi Jinping.

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US President Donald Trump and Chinese leader Xi Jinping. US shares, however, turned positive midday after a Chinese official said at the Group of 20 industrialized nations summit in Argentina that the United States and China were making progress on trade talks. "Consensus is steadily increasing," Wang Xiaolong, director general of the Chinese Foreign Ministry's department of international economic affairs, told Reuters on the sidelines of the summit. The S&P 500 and Nasdaq posted their biggest weekly percentage gains in nearly seven years on trade hopes and after the US Federal Reserve hinted this week at a more dovish approach to interest rate hikes. In Europe, Frankfurt's had its worst run since late 2008, weighed by Deutsche Bank shares falling to an all-time low as police searched the bank's headquarters for a second day in a money laundering scandal linked to the Panama Papers. MSCI's gauge of stocks across the globe shed 0.10 per cent, while the pan-European STOXX 600 index lost 0.17 per cent. On Wall Street, the Dow Jones Industrial Average rose 199.62 points, or 0.79 per cent, to 25,538.46, the S&P 500 gained 22.4 points, or 0.82 per cent, to 2,760.16 and the Nasdaq Composite added 57.45 points, or 0.79 per cent, to 7,330.54. November's real humdingers have been oil and shares of Apple Inc, which have plunged 21 per cent and 18 per cent, respectively, the biggest declines for both since the financial crisis a decade ago. Swelling oil inventories depressed sentiment and oil prices, despite widespread expectations that OPEC and Russia would agree on some form of production cut next week. OPEC and its allies are meeting in Vienna next week to discuss oil output. Ucrude fell 1.69 per cent to $50.58 per barrel and Brent was last at $58.68, down 1.39 per cent on the day. Markets could have a wild December if Trump and Xi fail to de-escalate their trade rhetoric during talks at this weekend's G20 meeting in Argentina. "The three key issues that people are really focusing on are how dovish is the Fed going to be going forward, how are trade relations with China going to play out, and what's going on in the oil markets," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis. "But as we get better news, that's helped lift the markets," Ripley added. "That's why we're seeing a week like this week." Trump pointed to positive signs in trade talks, saying on Friday, "We're working very hard. If we could make a deal, that would be good. I think they want to. I think we'd like to." Still, the dollar rose as investors prepared for fallout from the talks, which are expected to increase volatility across markets. The dollar index, tracking the greenback against six major currencies, rose 0.46 per cent, with the euro down 0.66 per cent to $1.1316.

Global markets: Oil tumbles on supply glut; Wall Street up on G20 comments

A "frank" exchange of views can be expected in top-level diplomatic and security talks between the United States and China on Friday, including on issues such as human rights and the South China Sea, the US ambassador to China said.

Terry Branstad told reporters at the State Department on Thursday that the United States would seek progress on priority issues, including North Korea, and that there would also be discussions on strategic security and how "to avoid mistakes or accidents that can happen in the military arena."

US Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will take part in the talks in Washington, with Chinese politburo member Yang Jiechi and Defense Minister Wei Fenghe. They were supposed to have been held in Beijing in October but were delayed amid rising tension over trade, Taiwan and the South China Sea.

While the focus will be on diplomacy and security, moves to try to resolve a damaging trade war between the two countries are expected to be touched upon ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 in Argentina at the end of November.&nbsp;

"We want this to be a constructive, results-oriented relationship with China," Branstad said. "The US is not trying to contain China but we want fairness and reciprocity."

China and the United States have put tariffs on hundreds of billions of dollars of each other`s goods and Trump has threatened to set tariffs on the remainder of China`s $500 billion-plus exports to the United States if the dispute cannot be resolved.

A resumption of high-level dialogue, marked by a phone call last week between the presidents, has raised some hopes, but the Trump administration has also accused China of interfering in US politics, charges China strongly denies. The two have also sparred over the disputed South China Sea and self-ruled Taiwan, which China claims.&nbsp;

Washington has also been increasingly critical of Chinese treatment of religious minorities, including Uighur Muslims in the western Chinese region of Xinjiang.

"The diplomatic and security dialogue is a forum for a frank, open exchange of views on a full range of issues from the South China Sea, to human rights," Branstad.

He noted Beijing`s cooperation on a range of international issues, calling it a "very key player" in getting North Korea back to negotiations.

Discussion is also expected on Friday of US plans to quit the 1987 Intermediate-Range Nuclear Forces Treaty with Russia, which has sparked Chinese worries that it could lead to the stationing of US land-based missiles in Asia.

Xi Jinping said on Thursday that China wants to resolve problems through talks, but Washington must respect Beijing`s choice of development path and interests.

China`s Foreign Ministry said Yang Jiechi met US national security adviser John Bolton on Wednesday and said the two sides should "properly manage differences and carefully prepare to ensure positive results in the Argentina meeting."

"China is committed to working with the US to achieve a no-confrontational, conflict-free, mutually respectful co-operation in which both sides win," it quoted Yang as saying.

A "frank" exchange of views can be expected in top-level diplomatic and security talks between the United States and China on Friday, including on issues such as human rights and the South China Sea, the US ambassador to China said.

A "frank" exchange of views can be expected in top-level diplomatic and security talks between the United States and China on Friday, including on issues such as human rights and the South China Sea, the US ambassador to China said. Terry Branstad told reporters at the State Department on Thursday that the United States would seek progress on priority issues, including North Korea, and that there would also be discussions on strategic security and how "to avoid mistakes or accidents that can happen in the military arena." US Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will take part in the talks in Washington, with Chinese politburo member Yang Jiechi and Defense Minister Wei Fenghe. They were supposed to have been held in Beijing in October but were delayed amid rising tension over trade, Taiwan and the South China Sea. While the focus will be on diplomacy and security, moves to try to resolve a damaging trade war between the two countries are expected to be touched upon ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 in Argentina at the end of November. "We want this to be a constructive, results-oriented relationship with China," Branstad said. "The US is not trying to contain China but we want fairness and reciprocity." China and the United States have put tariffs on hundreds of billions of dollars of each other`s goods and Trump has threatened to set tariffs on the remainder of China`s $500 billion-plus exports to the United States if the dispute cannot be resolved. A resumption of high-level dialogue, marked by a phone call last week between the presidents, has raised some hopes, but the Trump administration has also accused China of interfering in US politics, charges China strongly denies. The two have also sparred over the disputed South China Sea and self-ruled Taiwan, which China claims. Washington has also been increasingly critical of Chinese treatment of religious minorities, including Uighur Muslims in the western Chinese region of Xinjiang. "The diplomatic and security dialogue is a forum for a frank, open exchange of views on a full range of issues from the South China Sea, to human rights," Branstad. He noted Beijing`s cooperation on a range of international issues, calling it a "very key player" in getting North Korea back to negotiations. Discussion is also expected on Friday of US plans to quit the 1987 Intermediate-Range Nuclear Forces Treaty with Russia, which has sparked Chinese worries that it could lead to the stationing of US land-based missiles in Asia. Xi Jinping said on Thursday that China wants to resolve problems through talks, but Washington must respect Beijing`s choice of development path and interests. China`s Foreign Ministry said Yang Jiechi met US national security adviser John Bolton on Wednesday and said the two sides should "properly manage differences and carefully prepare to ensure positive results in the Argentina meeting." "China is committed to working with the US to achieve a no-confrontational, conflict-free, mutually respectful co-operation in which both sides win," it quoted Yang as saying.

US ambassador expects 'frank' exchanges in China dialogue on Friday

US President Donald Trump decried his country&#39;s &quot;one-sided and unfair&quot; trade deficit with Beijing on Thursday Thursday, but he told President Xi Jinping: &quot;I don&#39;t blame China.&quot;&nbsp;

&quot;After all, who can blame a country for being able to take advantage of another country for the sake of its citizens?&quot; he said during a signing ceremony for over $250 billion in US-Chinese business deals.&nbsp;

The deals range from billions in Chinese soybean imports to major projects like the development and export of liquified natural gas from Alaska.&nbsp;

Speaking after talks with his Chinese counterpart, Trump said that China has to take greater action on market access, forced technology transfers and theft of intellectual property.&nbsp;

&quot;We have to fix this because it just doesn&#39;t work, for our great American companies, and it doesn&rsquo;t work for our great American workers,&quot; he said. 
 
Xi delivered a brief speech following Trump&#39;s remarks, where he said China welcomed the international business community.&nbsp;

&quot;To keep opening up is our long-term strategy. We will not narrow or close our doors. We will open wider and wider,&quot; Xi said.

&quot;I will encourage Chinese businesses to do more investment in US and at the same time, invite more US companies to take part in One Belt One Road,&quot; Xi added.&nbsp;

He was referring to China&#39;s Silk Road project to revive ancient trade routes with a massive network of rail and maritime links.&nbsp;

Annually, the US runs a steep trade deficit in goods with China of about $350 billion. 
 
After the signing ceremony, China&#39;s commerce minister Zhong Shan praised the deals as &quot;truly a miracle, not just in the history of US-China relations, but in the history of the whole world&quot;.

But some analysts say any large deals will do little to shift the overall balance of trade unless the structural barriers preventing US businesses from competing fairly in China are changed.

The gas deal between the state of Alaska, Alaska Gasline Development Corp, China Petrochemical Corp (Sinopec), China Investment Corporation (CIC) and the Bank of China involves a total investment of up to $43 billion.

Official said the joint development agreement will create up to 12,000 American jobs and reduce the trade deficit between the United States and Asia by $10 billion annually.

In turn, it will provide China with clean and affordable energy.

US, China announced over $250 bn in business deals during Trump's visit

US President Donald Trump decried his country's "one-sided and unfair" trade deficit with Beijing on Thursday Thursday, but he told President Xi Jinping: "I don't blame China." "After all, who can blame a country for being able to take advantage of another country for the sake of its citizens?" he said during a signing ceremony for over $250 billion in US-Chinese business deals. The deals range from billions in Chinese soybean imports to major projects like the development and export of liquified natural gas from Alaska. Speaking after talks with his Chinese counterpart, Trump said that China has to take greater action on market access, forced technology transfers and theft of intellectual property. "We have to fix this because it just doesn't work, for our great American companies, and it doesn’t work for our great American workers," he said. Xi delivered a brief speech following Trump's remarks, where he said China welcomed the international business community. "To keep opening up is our long-term strategy. We will not narrow or close our doors. We will open wider and wider," Xi said. "I will encourage Chinese businesses to do more investment in US and at the same time, invite more US companies to take part in One Belt One Road," Xi added. He was referring to China's Silk Road project to revive ancient trade routes with a massive network of rail and maritime links. Annually, the US runs a steep trade deficit in goods with China of about $350 billion. After the signing ceremony, China's commerce minister Zhong Shan praised the deals as "truly a miracle, not just in the history of US-China relations, but in the history of the whole world". But some analysts say any large deals will do little to shift the overall balance of trade unless the structural barriers preventing US businesses from competing fairly in China are changed. The gas deal between the state of Alaska, Alaska Gasline Development Corp, China Petrochemical Corp (Sinopec), China Investment Corporation (CIC) and the Bank of China involves a total investment of up to $43 billion. Official said the joint development agreement will create up to 12,000 American jobs and reduce the trade deficit between the United States and Asia by $10 billion annually. In turn, it will provide China with clean and affordable energy.

Trump says trade surplus unfair, but 'I don't blame China'

President Trump is also considering possible trade actions against China, increasingly frustrated over Beijing&#39;s inaction on North Korea and bilateral trade issues.

Three senior administration officials told Reuters that Trump was impatient with China and was looking at a range of options, including tariffs on steel imports, which have previously been discussed by Commerce Secretary Wilbur Ross.

It remains unclear whether the President will actually take action.

The Trump&nbsp;administration has also slammed China for its poor human rights record, placing it on a list of the world&#39;s worst human trafficking offenders along with Sudan and North Korea.

In its annual &quot;Trafficking in Persons Report&quot; released Tuesday, the State Department stated that ethnic Uighurs were being coerced into forced labor, and Beijing was repatriating North Koreans without checking to see if they were trafficking victims.

Beijing &quot;does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so,&quot; the report said.

President Trump is considering possible trade actions against China, increasingly frustrated over Beijing's inaction on North Korea and bilateral trade issues

President Trump is also considering possible trade actions against China, increasingly frustrated over Beijing's inaction on North Korea and bilateral trade issues. Three senior administration officials told Reuters that Trump was impatient with China and was looking at a range of options, including tariffs on steel imports, which have previously been discussed by Commerce Secretary Wilbur Ross. It remains unclear whether the President will actually take action. The Trump administration has also slammed China for its poor human rights record, placing it on a list of the world's worst human trafficking offenders along with Sudan and North Korea. In its annual "Trafficking in Persons Report" released Tuesday, the State Department stated that ethnic Uighurs were being coerced into forced labor, and Beijing was repatriating North Koreans without checking to see if they were trafficking victims. Beijing "does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so," the report said.

President Trump mulling trade actions against China: Report

China issued a stern warning Friday that a conflict over North Korea could break out &quot;at any moment&quot;, as Pyongyang vowed a &quot;merciless&quot; response to any US military action. 
 
Tensions in the region have surged to fresh heights in recent days with speculation mounting that the North is preparing a sixth nuclear test.&nbsp; 
 
A US naval strike force has been deployed near the Korean peninsula, and President Donald Trump has issued stark warnings that the threat posed by Pyongyang&#39;s nuclear weapons programme &quot;will be taken care of&quot;. 
 
A clearly rattled China, under pressure from Trump to prevent any North Korean provocation, said the situation had reached breaking point. 
 
&quot;One has the feeling that a conflict could break out at any moment,&quot; Chinese foreign minister Wang Yi said.&nbsp; 
 
&quot;If a war occurs, the result is a situation in which everybody loses and there can be no winner,&quot; he added during a joint press conference in Beijing with the visiting French foreign minister. 
 
Wang`s comments mirrored a warning from the North Korean foreign ministry`s Institute for Disarmament and Peace that &quot;thermo-nuclear war may break out any moment&quot;. North Korea has invoked similarly dire scenarios on previous occasions when tensions on the Korean peninsula have spiked, but Beijing`s warnings have fuelled international concerns that the current situation is reaching tipping point. 
 
The North&#39;s Korean People`s Army (KPA) added its voice to the bellicose rhetoric on Friday with a statement threatening strikes against US military bases and other targets in South Korea. 
 
&quot;The closer such big targets as nuclear powered aircraft carriers come, the greater would be the effect of merciless strikes,&quot; said the statement carried by the North`s official KCNA news agency. 
Citing the recent missile strike Trump ordered against Syria -- which was widely interpreted as a warning to Pyongyang -- the KPA denounced the US president for embarking on a path of &quot;open threat and blackmail&quot; against the North. 
 
It also urged Washington to &quot;come to its senses&quot; and find a &quot;proper&quot; solution to the current stand-off.&nbsp; 
 
Trump&#39;s military muscle-flexing was on display again Thursday when the US on dropped the biggest non-nuclear bomb it possesses on Afghanistan, targeting a complex used by the Islamic State group. 
 
The American president has repeatedly said he will prevent Pyongyang from its goal of developing a nuclear-tipped ballistic missile capable of reaching the mainland United States. 
 
A White House foreign policy advisor said Friday that the US was assessing military options, and added that another provocative test was a question of &quot;when&quot; rather than &quot;if.&quot; 
 
Satellite imagery analysis has noted activity at the North`s main nuclear test site ahead of Saturday`s 105th anniversary of the birth of the country`s founder leader Kim Il-Sung.The North&#39;s sabre-rattling has encouraged a rapprochement between Trump and his Chinese counterpart Xi Jinping, who met face-to-face for the first time late last week at Trump`s Mar-a-Lago resort.&nbsp; 
 
Though his election campaign was marked with acerbic denouncements of China`s &quot;rape&quot; of the US economy, Trump dropped his anti-China bombast in Florida, afterwards hailing an &quot;outstanding&quot; relationship with Xi.&nbsp; 
 
But he insists China -- the North`s sole major ally and economic lifeline -- must exert more leverage on Pyongyang to abandon its nuclear ambitions or suffer the consequences. 
 
Beijing has long opposed dramatic action against the North, fearing the regime`s collapse would send a flood of refugees across its borders and leave the US military on its doorstep. 
 
China&#39;s state broadcaster CCTV announced Friday that Air China -- the only foreign carrier operating commercial flights into North Korea -- would suspend services to Pyongyang from next week. 
The report gave no reason for the suspension, but noted that Air China has taken similar action in the past because of low passenger volumes. 
 
Despite the mounting tensions, there has been little sign of strain on the streets of Pyongyang in recent days, where the focus has been on preparations for Saturday`s anniversary. 
 
North Korean leader Kim Jong-Un on Thursday unveiled the sprawling Ryomyong street development, a prestige housing project repeatedly promised in time to mark the occasion.&nbsp; 
 
Before the international press and tens of thousands of his adoring citizens, he cut a wide red ribbon to rhythmic cheers, before waving and returning to his Mercedes limousine.&nbsp;

(AFP) 
&nbsp;

A US naval strike force has been deployed near the Korean peninsula. A clearly rattled China says the situation has reached breaking point

China issued a stern warning Friday that a conflict over North Korea could break out "at any moment", as Pyongyang vowed a "merciless" response to any US military action. Tensions in the region have surged to fresh heights in recent days with speculation mounting that the North is preparing a sixth nuclear test. A US naval strike force has been deployed near the Korean peninsula, and President Donald Trump has issued stark warnings that the threat posed by Pyongyang's nuclear weapons programme "will be taken care of". A clearly rattled China, under pressure from Trump to prevent any North Korean provocation, said the situation had reached breaking point. "One has the feeling that a conflict could break out at any moment," Chinese foreign minister Wang Yi said. "If a war occurs, the result is a situation in which everybody loses and there can be no winner," he added during a joint press conference in Beijing with the visiting French foreign minister. Wang`s comments mirrored a warning from the North Korean foreign ministry`s Institute for Disarmament and Peace that "thermo-nuclear war may break out any moment". North Korea has invoked similarly dire scenarios on previous occasions when tensions on the Korean peninsula have spiked, but Beijing`s warnings have fuelled international concerns that the current situation is reaching tipping point. The North's Korean People`s Army (KPA) added its voice to the bellicose rhetoric on Friday with a statement threatening strikes against US military bases and other targets in South Korea. "The closer such big targets as nuclear powered aircraft carriers come, the greater would be the effect of merciless strikes," said the statement carried by the North`s official KCNA news agency. Citing the recent missile strike Trump ordered against Syria -- which was widely interpreted as a warning to Pyongyang -- the KPA denounced the US president for embarking on a path of "open threat and blackmail" against the North. It also urged Washington to "come to its senses" and find a "proper" solution to the current stand-off. Trump's military muscle-flexing was on display again Thursday when the US on dropped the biggest non-nuclear bomb it possesses on Afghanistan, targeting a complex used by the Islamic State group. The American president has repeatedly said he will prevent Pyongyang from its goal of developing a nuclear-tipped ballistic missile capable of reaching the mainland United States. A White House foreign policy advisor said Friday that the US was assessing military options, and added that another provocative test was a question of "when" rather than "if." Satellite imagery analysis has noted activity at the North`s main nuclear test site ahead of Saturday`s 105th anniversary of the birth of the country`s founder leader Kim Il-Sung.The North's sabre-rattling has encouraged a rapprochement between Trump and his Chinese counterpart Xi Jinping, who met face-to-face for the first time late last week at Trump`s Mar-a-Lago resort. Though his election campaign was marked with acerbic denouncements of China`s "rape" of the US economy, Trump dropped his anti-China bombast in Florida, afterwards hailing an "outstanding" relationship with Xi. But he insists China -- the North`s sole major ally and economic lifeline -- must exert more leverage on Pyongyang to abandon its nuclear ambitions or suffer the consequences. Beijing has long opposed dramatic action against the North, fearing the regime`s collapse would send a flood of refugees across its borders and leave the US military on its doorstep. China's state broadcaster CCTV announced Friday that Air China -- the only foreign carrier operating commercial flights into North Korea -- would suspend services to Pyongyang from next week. The report gave no reason for the suspension, but noted that Air China has taken similar action in the past because of low passenger volumes. Despite the mounting tensions, there has been little sign of strain on the streets of Pyongyang in recent days, where the focus has been on preparations for Saturday`s anniversary. North Korean leader Kim Jong-Un on Thursday unveiled the sprawling Ryomyong street development, a prestige housing project repeatedly promised in time to mark the occasion. Before the international press and tens of thousands of his adoring citizens, he cut a wide red ribbon to rhythmic cheers, before waving and returning to his Mercedes limousine. (AFP)

China warns of war 'at any moment' as North Korea vows 'merciless' response to US

President Donald Trump predicted a &quot;very great&quot; relationship with China&#39;s Xi Jinping as the pair met for the first time at his Florida resort of Mar-a-Lago Thursday, when cordiality replaced tough anti-China rhetoric.

Trump, in his signature red tie, warmly welcomed his Chinese counterpart Xi, decked out in contrasting blue, to what the US leader likes to call the &quot;Winter White House&quot; for a superpower summit in the sun.

Inside the luxurious resort Trump waxed lyrical that it was a &quot;great honour&quot; to host the Chinese leader, breaking the ice with a joke about his own dealmaking prowess.

&quot;We had a long discussion already. So far, I have gotten nothing. Absolutely nothing,&quot; he said to laughs from the delegation. &nbsp;

&quot;But I can see that, I think long-term, we are going to have a very, very great relationship and I look very much forward to it.&quot;

This is the first time the two leaders meet, after a US election that featured frequent barbs at China&#39;s &quot;rape&quot; of the US economy.

During that campaign Trump had ridiculed his predecessor&#39;s decision to offer Xi a coveted state dinner, saying that -- if elected -- he would serve the 63-year-old a Big Mac.

But inside Mar-a-Lago&#39;s ornate dining room -- with gold-trimmed chairs, fine cut glass and polished silverware -- it was Dover sole with champagne sauce and New York strip steak with whipped potatoes rather than McDonald&#39;s on the menu.

The open agenda and the personal setting for the 24-hour summit are designed to allow the leaders to freewheel and build a rapport, in what is the world&#39;s most important relationship.

Amid concerns about security and public perceptions, Xi and his wife are not staying at Mar-a-Lago, but at a resort and spa a short drive down the palm-fringed coast that is, for now, watched by snipers, tactical units and a coastguard cutter.

The two leaders were joined Thursday evening by US first lady and former model Melania Trump and Peng Liyuan -- a celebrated folk singer who Trump hailed as a &quot;great, great celebrity.&quot;

Talks will continue up to a working lunch on Friday, and are likely to turn to more serious issues.

The summit has been somewhat overshadowed by renewed missile tests in North Korea and possible US military action in response to an apparent chemical attack in Syria.

The UN Security Council &nbsp;-- where both China and the United States hold a veto -- is holding crisis talks to discuss a response to Bashar al-Assad&#39;s Syrian regime.

Peace offerings&nbsp;

Xi had arrived to the meeting with a gift basket of &quot;tweetable deliverables,&quot; sources say, peace offerings on Trump&#39;s signature issues -- trade and jobs -- that he hopes will smooth over a relationship that began on shaky ground following disagreements over Taiwan.

Top of the list, according to a source briefed on Xi&#39;s plans, will be a package of Chinese investments aimed at creating more than 700,000 American jobs -- the number pledged to Trump by China&#39;s regional rival Japan, during Prime Minister Shinzo Abe&#39;s February Mar-a-Lago visit.

There may also be offers to further open China&#39;s auto and agricultural markets, insiders say, and even some concessions on Chinese banks&#39; transactions with North Korea, a vital financial lifeline for the country.

In return, Xi hopes to get assurances from Trump on punitive tariffs and that an American arms sale to Taiwan will be delayed, at least until after a major Communist Party meeting later this year.

Trump&#39;s position on democratically-ruled Taiwan, which China considers a breakaway province, has been a major irritant since the billionaire politician accepted a protocol-breaking phone call from the Taiwanese president after his election victory.

All politics is local&nbsp;

The summit stakes, both domestic and international, are high.

Disagreements over approaches to North Korea or bilateral trade could, if mishandled, destabilize North East Asia or tank the global economy.

On the domestic political front, Xi is heading into a critical year. Ahead of a party congress that could cement his grip on power for years to come, he needs to show that he can deal with the US leader as an equal.

He &quot;cannot afford to lose face while China aspires to be the new center of gravity for the world order,&quot; China political analyst Willy Lam told AFP.

Meanwhile, Trump -- who is reeling from legislative defeats, low approval ratings and unrelenting scandals --&nbsp;desperately needs a win.&nbsp;

On the US side, however, North Korea will likely top the agenda following Wednesday&#39;s provocative missile launch.

The Trump White House worries Pyongyang is just months away from marrying nuclear and long-range missile technology and putting the west coast of the United States within striking distance.

While Beijing has condemned the missile tests, it has hesitated to take dramatic action against Pyongyang, fearing that the country&#39;s collapse would generate a flood of refugees across its borders and leave the US military on its doorstep.

(AFP)

The US and Chinese presidents meet for the first time amid Trump's several jibes and anger aimed at Beijing

President Donald Trump predicted a "very great" relationship with China's Xi Jinping as the pair met for the first time at his Florida resort of Mar-a-Lago Thursday, when cordiality replaced tough anti-China rhetoric. Trump, in his signature red tie, warmly welcomed his Chinese counterpart Xi, decked out in contrasting blue, to what the US leader likes to call the "Winter White House" for a superpower summit in the sun. Inside the luxurious resort Trump waxed lyrical that it was a "great honour" to host the Chinese leader, breaking the ice with a joke about his own dealmaking prowess. "We had a long discussion already. So far, I have gotten nothing. Absolutely nothing," he said to laughs from the delegation. "But I can see that, I think long-term, we are going to have a very, very great relationship and I look very much forward to it." This is the first time the two leaders meet, after a US election that featured frequent barbs at China's "rape" of the US economy. During that campaign Trump had ridiculed his predecessor's decision to offer Xi a coveted state dinner, saying that -- if elected -- he would serve the 63-year-old a Big Mac. But inside Mar-a-Lago's ornate dining room -- with gold-trimmed chairs, fine cut glass and polished silverware -- it was Dover sole with champagne sauce and New York strip steak with whipped potatoes rather than McDonald's on the menu. The open agenda and the personal setting for the 24-hour summit are designed to allow the leaders to freewheel and build a rapport, in what is the world's most important relationship. Amid concerns about security and public perceptions, Xi and his wife are not staying at Mar-a-Lago, but at a resort and spa a short drive down the palm-fringed coast that is, for now, watched by snipers, tactical units and a coastguard cutter. The two leaders were joined Thursday evening by US first lady and former model Melania Trump and Peng Liyuan -- a celebrated folk singer who Trump hailed as a "great, great celebrity." Talks will continue up to a working lunch on Friday, and are likely to turn to more serious issues. The summit has been somewhat overshadowed by renewed missile tests in North Korea and possible US military action in response to an apparent chemical attack in Syria. The UN Security Council -- where both China and the United States hold a veto -- is holding crisis talks to discuss a response to Bashar al-Assad's Syrian regime. Peace offerings Xi had arrived to the meeting with a gift basket of "tweetable deliverables," sources say, peace offerings on Trump's signature issues -- trade and jobs -- that he hopes will smooth over a relationship that began on shaky ground following disagreements over Taiwan. Top of the list, according to a source briefed on Xi's plans, will be a package of Chinese investments aimed at creating more than 700,000 American jobs -- the number pledged to Trump by China's regional rival Japan, during Prime Minister Shinzo Abe's February Mar-a-Lago visit. There may also be offers to further open China's auto and agricultural markets, insiders say, and even some concessions on Chinese banks' transactions with North Korea, a vital financial lifeline for the country. In return, Xi hopes to get assurances from Trump on punitive tariffs and that an American arms sale to Taiwan will be delayed, at least until after a major Communist Party meeting later this year. Trump's position on democratically-ruled Taiwan, which China considers a breakaway province, has been a major irritant since the billionaire politician accepted a protocol-breaking phone call from the Taiwanese president after his election victory. All politics is local The summit stakes, both domestic and international, are high. Disagreements over approaches to North Korea or bilateral trade could, if mishandled, destabilize North East Asia or tank the global economy. On the domestic political front, Xi is heading into a critical year. Ahead of a party congress that could cement his grip on power for years to come, he needs to show that he can deal with the US leader as an equal. He "cannot afford to lose face while China aspires to be the new center of gravity for the world order," China political analyst Willy Lam told AFP. Meanwhile, Trump -- who is reeling from legislative defeats, low approval ratings and unrelenting scandals -- desperately needs a win. On the US side, however, North Korea will likely top the agenda following Wednesday's provocative missile launch. The Trump White House worries Pyongyang is just months away from marrying nuclear and long-range missile technology and putting the west coast of the United States within striking distance. While Beijing has condemned the missile tests, it has hesitated to take dramatic action against Pyongyang, fearing that the country's collapse would generate a flood of refugees across its borders and leave the US military on its doorstep. (AFP)

Trump bins sharp anti-China rhetoric to host Xi with 'great honour'

Presidents Donald Trump and Xi Jinping arrived in Florida Thursday for a first face-to-face summit, eying a basket full of &quot;tweetable&quot; deals to help avoid a public clash.

Xi touched down at Palm Beach airport, where he received red carpet treatment and a military honour guard that offered no hint of the tensions that permeate this high-stakes superpower pow-wow.

Trump arrived a little later and headed to his Mar-a-Lago resort -- dubbed the &quot;Winter White House&quot; -- where he will host Xi for what promises to be a masterclass in studied informality.

The agenda for the 24 hour summit has purposely been left open, allowing the leaders to freewheel and build a rapport. Thursday&#39;s main event is a joint dinner.

Matt Pottinger, a top White House Asia expert who was tasked with planning the summit, promised a &quot;relaxed interaction&quot; despite a backdrop of tensions over trade and North Korea.

&quot;Spouses will be there&quot; said Pottinger, indicating the leaders will be joined Thursday evening by US first lady and former model Melania Trump and Peng Liyuan -- a celebrated folk singer who was once more famous than her husband.

The group will &quot;have an opportunity to have tea together, meet some of their senior cabinet officials, so to speak, on both sides, and have a dinner,&quot; Pottinger added.

Talks will continue up to a working lunch on Friday.

Amid concerns about security and public perceptions, officials said Xi and his wife will not be staying at Mar-a-Lago, but at a resort and spa a short drive down the palm-fringed coast that is, for now, watched by snipers, tactical units and a coastguard cutter.

The carefully choreographed dinners and displays of bonhomie mask an almost palpable anxiety about how the meeting will go.

Peace offerings&nbsp;

No one -- neither diplomats nor aides -- can be sure what will happen when the most powerful Chinese leader in a generation meets a mercurial American president who has been in office less than 100 days and is capable of unraveling the most carefully-laid plans with a single 140-character tweet.

For that reason Xi is arriving with a gift-basket of &quot;tweetable deliverables&quot;, sources say, peace offerings on Trump&#39;s signature issues -- trade and jobs -- that he hopes will smooth over a relationship that began on shaky ground following disagreements over Taiwan.

Top of the list, according to a source briefed on Xi&#39;s plans, will be a package of Chinese investments aimed at creating more than 700,000 American jobs -- the number pledged to Trump by China&#39;s regional rival Japan, during Prime Minister Shinzo Abe&#39;s February Mar-a-Lago visit.

There may also be offers to further open China&#39;s auto and agricultural markets, insiders say, and even some concessions on Chinese banks&#39; transactions with North Korea, a vital financial lifeline for the country.

In return, Xi hopes to get assurances from Trump on punitive tariffs and that an American arms sale to Taiwan will be delayed, at least until after a major Communist Party meeting later this year.

Trump&#39;s position on the democratically-ruled Taiwan, which China considers a breakaway province, has been a major irritant since the billionaire politician accepted a protocol-breaking phone call from the Taiwanese president after his election victory.

All politics is local&nbsp;

The summit stakes, both domestic and international, are high.

Disagreements over approaches to North Korea or bilateral trade could, if mishandled, destabilize North East Asia or tank the global economy.

On the domestic political front, Xi is heading into a critical year. Ahead of a party congress that could cement his grip on power for years to come, he needs to show that he can deal with the US leader as an equal.

He &quot;cannot afford to lose face while China aspires to be the new center of gravity for the world order,&quot; China political analyst Willy Lam told AFP.

Meanwhile, Trump -- who is reeling from legislative defeats, low approval ratings and unrelenting scandals --&nbsp;desperately needs a win.&nbsp;

He may not have much room to maneuver, however, with a country he has castigated for &quot;stealing&quot; American jobs and doing &quot;little&quot; to rein in North Korea&#39;s nuclear program.

Even though the two leaders &quot;want to project themselves as very forceful, very decisive and also getting the best for the benefit of their own countries, they are also anxious not to get into difficult negotiating positions,&quot; according to Lam.

On the US side, however, North Korea will likely top the agenda following a provocative missile launch Wednesday -- barely 48 hours before the summit.

Different interests&nbsp;

The Trump White House worries Pyongyang is just months away from marrying nuclear and long-range missile technology and putting the west coast of the United States within striking distance.

The tough-talking new president has repeatedly and very publicly indicated his openness to military action.

While Beijing has condemned the missile tests, it has hesitated to take dramatic action against Pyongyang, fearing that the country&#39;s collapse would generate a flood of refugees across its borders and leave the US military on its doorstep.

But coming to an agreement on the issue will not be easy, according to Bonnie Glaser, a China expert at the Washington-based Center for Strategic and International Studies (CSIS).

&quot;I don&#39;t think they&#39;re talking about solutions... at the end of the day, their interests are not really the same as the United States.&#39;&quot;

(AFP)

The agenda for the 24 hour summit has purposely been left open, allowing the leaders to freewheel and build a rapport

Presidents Donald Trump and Xi Jinping arrived in Florida Thursday for a first face-to-face summit, eying a basket full of "tweetable" deals to help avoid a public clash. Xi touched down at Palm Beach airport, where he received red carpet treatment and a military honour guard that offered no hint of the tensions that permeate this high-stakes superpower pow-wow. Trump arrived a little later and headed to his Mar-a-Lago resort -- dubbed the "Winter White House" -- where he will host Xi for what promises to be a masterclass in studied informality. The agenda for the 24 hour summit has purposely been left open, allowing the leaders to freewheel and build a rapport. Thursday's main event is a joint dinner. Matt Pottinger, a top White House Asia expert who was tasked with planning the summit, promised a "relaxed interaction" despite a backdrop of tensions over trade and North Korea. "Spouses will be there" said Pottinger, indicating the leaders will be joined Thursday evening by US first lady and former model Melania Trump and Peng Liyuan -- a celebrated folk singer who was once more famous than her husband. The group will "have an opportunity to have tea together, meet some of their senior cabinet officials, so to speak, on both sides, and have a dinner," Pottinger added. Talks will continue up to a working lunch on Friday. Amid concerns about security and public perceptions, officials said Xi and his wife will not be staying at Mar-a-Lago, but at a resort and spa a short drive down the palm-fringed coast that is, for now, watched by snipers, tactical units and a coastguard cutter. The carefully choreographed dinners and displays of bonhomie mask an almost palpable anxiety about how the meeting will go. Peace offerings No one -- neither diplomats nor aides -- can be sure what will happen when the most powerful Chinese leader in a generation meets a mercurial American president who has been in office less than 100 days and is capable of unraveling the most carefully-laid plans with a single 140-character tweet. For that reason Xi is arriving with a gift-basket of "tweetable deliverables", sources say, peace offerings on Trump's signature issues -- trade and jobs -- that he hopes will smooth over a relationship that began on shaky ground following disagreements over Taiwan. Top of the list, according to a source briefed on Xi's plans, will be a package of Chinese investments aimed at creating more than 700,000 American jobs -- the number pledged to Trump by China's regional rival Japan, during Prime Minister Shinzo Abe's February Mar-a-Lago visit. There may also be offers to further open China's auto and agricultural markets, insiders say, and even some concessions on Chinese banks' transactions with North Korea, a vital financial lifeline for the country. In return, Xi hopes to get assurances from Trump on punitive tariffs and that an American arms sale to Taiwan will be delayed, at least until after a major Communist Party meeting later this year. Trump's position on the democratically-ruled Taiwan, which China considers a breakaway province, has been a major irritant since the billionaire politician accepted a protocol-breaking phone call from the Taiwanese president after his election victory. All politics is local The summit stakes, both domestic and international, are high. Disagreements over approaches to North Korea or bilateral trade could, if mishandled, destabilize North East Asia or tank the global economy. On the domestic political front, Xi is heading into a critical year. Ahead of a party congress that could cement his grip on power for years to come, he needs to show that he can deal with the US leader as an equal. He "cannot afford to lose face while China aspires to be the new center of gravity for the world order," China political analyst Willy Lam told AFP. Meanwhile, Trump -- who is reeling from legislative defeats, low approval ratings and unrelenting scandals -- desperately needs a win. He may not have much room to maneuver, however, with a country he has castigated for "stealing" American jobs and doing "little" to rein in North Korea's nuclear program. Even though the two leaders "want to project themselves as very forceful, very decisive and also getting the best for the benefit of their own countries, they are also anxious not to get into difficult negotiating positions," according to Lam. On the US side, however, North Korea will likely top the agenda following a provocative missile launch Wednesday -- barely 48 hours before the summit. Different interests The Trump White House worries Pyongyang is just months away from marrying nuclear and long-range missile technology and putting the west coast of the United States within striking distance. The tough-talking new president has repeatedly and very publicly indicated his openness to military action. While Beijing has condemned the missile tests, it has hesitated to take dramatic action against Pyongyang, fearing that the country's collapse would generate a flood of refugees across its borders and leave the US military on its doorstep. But coming to an agreement on the issue will not be easy, according to Bonnie Glaser, a China expert at the Washington-based Center for Strategic and International Studies (CSIS). "I don't think they're talking about solutions... at the end of the day, their interests are not really the same as the United States.'" (AFP)

Chinese President Xi Jinping arrives in US for high-stakes summit

US Secretary of State Rex Tillerson on Friday used his first meeting with Chinese counterpart Wang Yi to urge Beijing to help rein in North Korea after its series of nuclear and ballistic missile tests.

Trump however reaffirmed the position in a conciliatory phone call to Chinese President Xi Jinping, mending fences enough for Wang to come to Bonn for a G20 foreign ministers meeting.

&quot;Secretary Tillerson and Minister Wang noted the recent call between leaders and discussed efforts to advance bilateral cooperation while addressing differences in a constructive manner,&quot; Mark Toner, acting US State Department spokesman, said.

&quot;Secretary Tillerson also highlighted the increasing threat posed by North Korea&#39;s nuclear and missile programs and urged China to use all available tools to moderate North Korea&#39;s destabilising behaviour,&quot; Toner said.

China is North Korea&#39;s last major ally and has shown itself reluctant to put too much pressure on Pyongyang.

In the meantime, reclusive North Korea has made huge strides in both its missile and nuclear weapons programme to the point where it could acquire the capability to hit the US mainland.

Washington has led international efforts to get Pyongyang to reverse course, including imposing sanctions, but all to no avail as its regional allies take fright at North Korea&#39;s ambitions.

On Thursday, Tillerson pledged that Washington would use the full range of its arsenal, including nuclear weapons, to defend Japan and South Korea against North Korea, which conducted another ballistic missile test on Sunday.

&quot;The United States remains steadfast in its defence commitments to its allies, the Republic of Korea and Japan, including the commitment to provide extended deterrence, backed by the full range of its nuclear and conventional defence capabilities,&quot; Tillerson said in a joint statement with their foreign ministers.

Washington&#39;s recent decision to install a sophisticated THAAD anti-missile system in South Korea especially angered China which condemned the move as a potential threat to its own security.&nbsp;

Global trade, protectionism&nbsp;

Toner said Tillerson and Yang &quot;also discussed the need to create a level playing field for trade and investment.&quot;

On the campaign trail, Trump regularly attacked China for stealing American jobs and running a massive, unfairly won trade surplus with the United States which he would reverse by whatever means necessary.

Chinese President Xi pointedly made a signature address to the Davos World Economic Forum in January to defend free trade and globalisation which he said were menaced by growing protectionist sentiment.

When the Chinese foreign ministry &nbsp;announced Wang&#39;s trip would go ahead, it said Beijing hoped the G20 gathering would &quot;send positive signals on supporting multilateralism, enhancing global governance and creating an innovative, interconnected, open and inclusive world economy.&quot;

Several of Trump&#39;s cabinet, including Tillerson, have also warned Beijing against throwing its weight about in the South China Sea, insisting the US would intervene if necessary to preserve international rights of navigation.

Although Washington severed ties with Taiwan in 1979, it has retained close links with Taipei, particularly in defence, and Beijing watches closely for any sign of US backsliding.

Taiwan has been ruled separately since Mao Zedong&#39;s communists ousted China&#39;s Nationalists who fled to the island in 1949.

(AFP) 
&nbsp;

China is North Korea's last major ally and has shown itself reluctant to put too much pressure on Pyongyang

US Secretary of State Rex Tillerson on Friday used his first meeting with Chinese counterpart Wang Yi to urge Beijing to help rein in North Korea after its series of nuclear and ballistic missile tests. Trump however reaffirmed the position in a conciliatory phone call to Chinese President Xi Jinping, mending fences enough for Wang to come to Bonn for a G20 foreign ministers meeting. "Secretary Tillerson and Minister Wang noted the recent call between leaders and discussed efforts to advance bilateral cooperation while addressing differences in a constructive manner," Mark Toner, acting US State Department spokesman, said. "Secretary Tillerson also highlighted the increasing threat posed by North Korea's nuclear and missile programs and urged China to use all available tools to moderate North Korea's destabilising behaviour," Toner said. China is North Korea's last major ally and has shown itself reluctant to put too much pressure on Pyongyang. In the meantime, reclusive North Korea has made huge strides in both its missile and nuclear weapons programme to the point where it could acquire the capability to hit the US mainland. Washington has led international efforts to get Pyongyang to reverse course, including imposing sanctions, but all to no avail as its regional allies take fright at North Korea's ambitions. On Thursday, Tillerson pledged that Washington would use the full range of its arsenal, including nuclear weapons, to defend Japan and South Korea against North Korea, which conducted another ballistic missile test on Sunday. "The United States remains steadfast in its defence commitments to its allies, the Republic of Korea and Japan, including the commitment to provide extended deterrence, backed by the full range of its nuclear and conventional defence capabilities," Tillerson said in a joint statement with their foreign ministers. Washington's recent decision to install a sophisticated THAAD anti-missile system in South Korea especially angered China which condemned the move as a potential threat to its own security. Global trade, protectionism Toner said Tillerson and Yang "also discussed the need to create a level playing field for trade and investment." On the campaign trail, Trump regularly attacked China for stealing American jobs and running a massive, unfairly won trade surplus with the United States which he would reverse by whatever means necessary. Chinese President Xi pointedly made a signature address to the Davos World Economic Forum in January to defend free trade and globalisation which he said were menaced by growing protectionist sentiment. When the Chinese foreign ministry announced Wang's trip would go ahead, it said Beijing hoped the G20 gathering would "send positive signals on supporting multilateralism, enhancing global governance and creating an innovative, interconnected, open and inclusive world economy." Several of Trump's cabinet, including Tillerson, have also warned Beijing against throwing its weight about in the South China Sea, insisting the US would intervene if necessary to preserve international rights of navigation. Although Washington severed ties with Taiwan in 1979, it has retained close links with Taipei, particularly in defence, and Beijing watches closely for any sign of US backsliding. Taiwan has been ruled separately since Mao Zedong's communists ousted China's Nationalists who fled to the island in 1949. (AFP)

US wants China to moderate North Korea's 'destabilising behaviour'

China called on US officials on Tuesday not to let Taiwanese President Tsai Ing-wen pass through the United States en route to Guatemala next month, days after President-elect Donald Trump irked Beijing by speaking to Tsai in a break with decades of precedent.

The US State Department appeared to reject the call, saying that such transits were based on &quot;long-standing US practice, consistent with the unofficial nature of (US) relations with Taiwan&quot;.

China is deeply suspicious of Tsai, whom it thinks wants to push for the formal independence of Taiwan, a self-governing island that Beijing regards as a renegade province.

Her call with Trump on Friday was the first between a US president-elect or president and a Taiwanese leader since President Jimmy Carter switched diplomatic recognition to China from Taiwan in 1979.

Tsai is due to visit Guatemala, one of Taiwan&#39;s small band of diplomatic allies, on January 11-12, its foreign minister, Carlos Raul Morales, told Reuters.

Taiwan&#39;s Liberty Times, considered close to Tsai&#39;s ruling Democratic Progressive Party, reported on Monday that she was planning to go through New York early next month on her way to Nicaragua, Guatemala and El Salvador.

Taiwan has not formally confirmed Tsai&#39;s trip but visits to its allies in the region are normally combined with transit stops in the United States and meetings with Taiwan-friendly officials.

The trip would take place before Trump is inaugurated on January 20 to replace Democrat Barack Obama and Tsai&#39;s delegation would seek to meet Trump&#39;s team, including his White House chief of staff Reince Priebus, the Liberty Times said.

&nbsp;

Meeting unlikely

An adviser to Trump&#39;s transition team said he considered it &quot;very unlikely&quot; there would be a meeting between Tsai and Trump if she were to go through New York.

China&#39;s Foreign Ministry said the one-China principle, which states Taiwan is part of China, was commonly recognised by the international community and that Tsai&#39;s real aim was &quot;self-evident&quot;.

China hopes the United States &quot;does not allow her transit, and does not send any wrong signals to &#39;Taiwan independence&#39; forces,&quot; the ministry said in a statement sent to Reuters.

US&nbsp;State Department spokesman Mark Toner said on Monday he had no information whether Tsai would meet US&nbsp;officials if she stopped in transit but said Taiwanese presidents did stop over periodically.

He said the transits were &quot;based on long-standing US&nbsp;practice, consistent with the unofficial nature of our relations with Taiwan.&quot; A spokeswoman repeated the position on Tuesday when asked to comment on the Chinese call.

In a meeting with American reporters on Tuesday, Tsai played down the significance of her conversation with Trump, saying it was to congratulate the president-elect.

&quot;I do not foresee major policy shifts in the near future because we all see the value of stability in the region,&quot; she told the reporters.

US vice president-elect Mike Pence told the Fox News Channel on Tuesday that Trump did not regret taking the call.

&quot;(The) president-elect was fully aware of the one-China policy,&quot; Pence said. &quot;He&rsquo;s also very aware that the United States has sold billions of dollars in arms to Taiwan. We have a unique relationship with that country that&rsquo;s been defined over the decades since we&rsquo;ve reopened relations with the People&rsquo;s Republic of China but I think he think he felt it would be rude not to take the call.&rdquo;

Taiwan has been self governing since 1949 when Nationalist forces fled to the island after defeat by Mao Zedong&#39;s communists in China&#39;s civil war. Taiwan&#39;s Presidential Office said media reports about a January trip were &quot;excessive speculation&quot;.

El Salvador&#39;s government said it was working with Taiwan on plans for a visit by Tsai in the second week of January but gave no specific dates.

The Nicaraguan government had no immediate comment. Nicaraguan President Daniel Ortega is to be sworn in for a third consecutive term on January 10, however, so Tsai&#39;s trip to Guatemala would dovetail with that ceremony.

The White House said on Monday it had sought to reassure China after Trump&#39;s phone call with Tsai, which the Obama administration warned could undermine progress in relations with Beijing.

(Reuters)

The US State Department appeared to reject the request, saying that such transits were based on 'long-standing US practice'

China called on US officials on Tuesday not to let Taiwanese President Tsai Ing-wen pass through the United States en route to Guatemala next month, days after President-elect Donald Trump irked Beijing by speaking to Tsai in a break with decades of precedent. The US State Department appeared to reject the call, saying that such transits were based on "long-standing US practice, consistent with the unofficial nature of (US) relations with Taiwan". China is deeply suspicious of Tsai, whom it thinks wants to push for the formal independence of Taiwan, a self-governing island that Beijing regards as a renegade province. Her call with Trump on Friday was the first between a US president-elect or president and a Taiwanese leader since President Jimmy Carter switched diplomatic recognition to China from Taiwan in 1979. Tsai is due to visit Guatemala, one of Taiwan's small band of diplomatic allies, on January 11-12, its foreign minister, Carlos Raul Morales, told Reuters. Taiwan's Liberty Times, considered close to Tsai's ruling Democratic Progressive Party, reported on Monday that she was planning to go through New York early next month on her way to Nicaragua, Guatemala and El Salvador. Taiwan has not formally confirmed Tsai's trip but visits to its allies in the region are normally combined with transit stops in the United States and meetings with Taiwan-friendly officials. The trip would take place before Trump is inaugurated on January 20 to replace Democrat Barack Obama and Tsai's delegation would seek to meet Trump's team, including his White House chief of staff Reince Priebus, the Liberty Times said. Meeting unlikely An adviser to Trump's transition team said he considered it "very unlikely" there would be a meeting between Tsai and Trump if she were to go through New York. China's Foreign Ministry said the one-China principle, which states Taiwan is part of China, was commonly recognised by the international community and that Tsai's real aim was "self-evident". China hopes the United States "does not allow her transit, and does not send any wrong signals to 'Taiwan independence' forces," the ministry said in a statement sent to Reuters. US State Department spokesman Mark Toner said on Monday he had no information whether Tsai would meet US officials if she stopped in transit but said Taiwanese presidents did stop over periodically. He said the transits were "based on long-standing US practice, consistent with the unofficial nature of our relations with Taiwan." A spokeswoman repeated the position on Tuesday when asked to comment on the Chinese call. In a meeting with American reporters on Tuesday, Tsai played down the significance of her conversation with Trump, saying it was to congratulate the president-elect. "I do not foresee major policy shifts in the near future because we all see the value of stability in the region," she told the reporters. US vice president-elect Mike Pence told the Fox News Channel on Tuesday that Trump did not regret taking the call. "(The) president-elect was fully aware of the one-China policy," Pence said. "He’s also very aware that the United States has sold billions of dollars in arms to Taiwan. We have a unique relationship with that country that’s been defined over the decades since we’ve reopened relations with the People’s Republic of China but I think he think he felt it would be rude not to take the call.” Taiwan has been self governing since 1949 when Nationalist forces fled to the island after defeat by Mao Zedong's communists in China's civil war. Taiwan's Presidential Office said media reports about a January trip were "excessive speculation". El Salvador's government said it was working with Taiwan on plans for a visit by Tsai in the second week of January but gave no specific dates. The Nicaraguan government had no immediate comment. Nicaraguan President Daniel Ortega is to be sworn in for a third consecutive term on January 10, however, so Tsai's trip to Guatemala would dovetail with that ceremony. The White House said on Monday it had sought to reassure China after Trump's phone call with Tsai, which the Obama administration warned could undermine progress in relations with Beijing. (Reuters)

China asks US to block Taiwan president's stopover after Trump phone call

China&#39;s President Xi Jinping said his country&#39;s ties with the United States had&nbsp;reached a &#39;hinge moment&#39;, indirectly hinting at difficult moments Beijing may encounter when&nbsp;Donald Trump assumes the presidency.

Xi said he hoped that the two countries would continue to &quot;manage differences&quot; in the future and urged the incoming Trump administration to &quot;make sure there is a smooth transition in the relationship&quot;.

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&nbsp;

The Chinese premier made the cautionary statement when he met his US counterpart Barack Obama for the last time on the sidelines of the&nbsp;Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru.

Xi voiced his skepticism about the next administration&nbsp;because Trump repeatedly beat China with a stick during his campaign trail.

In his election speeches, Trump had accused&nbsp;Beijing several times of&nbsp;inventing&nbsp;global warming and rigging the rules of global trade.

Obama also stressed on the need to have a healthy bilateral relations with Beijing because it &quot;benefits our two peoples and benefits the entire globe&quot;.

&quot;We&#39;ve demonstrated what&#39;s possible when our two countries work together,&quot; he said, referring to their agreement to tackle global warming.&nbsp;

Xi and Obama have met a total of nine times.

(WION with inputs from AFP)

He was indirectly hinting at difficult moments Beijing might encounter after Donald Trump assumes the presidency.

China's President Xi Jinping said his country's ties with the United States had reached a 'hinge moment', indirectly hinting at difficult moments Beijing may encounter when Donald Trump assumes the presidency. Xi said he hoped that the two countries would continue to "manage differences" in the future and urged the incoming Trump administration to "make sure there is a smooth transition in the relationship". Xi said he hoped the two countries would continue to 'manage differences' in the future × The Chinese premier made the cautionary statement when he met his US counterpart Barack Obama for the last time on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru. Xi voiced his skepticism about the next administration because Trump repeatedly beat China with a stick during his campaign trail. In his election speeches, Trump had accused Beijing several times of inventing global warming and rigging the rules of global trade. Obama also stressed on the need to have a healthy bilateral relations with Beijing because it "benefits our two peoples and benefits the entire globe". "We've demonstrated what's possible when our two countries work together," he said, referring to their agreement to tackle global warming. Xi and Obama have met a total of nine times. (WION with inputs from AFP)

China-US relations have reached 'hinge moment', says Xi

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